Alibaba, JD And Nio Rivals Li Auto, Xpeng Slump In Hong Kong As China COVID-19 Outbreak Worsens

Shares of Alibaba Group Holding Limited BABA, JD.Com Inc. JD, Baidu Inc. BIDU, Tencent Holdings Inc. TCEHY, Li Auto Inc. LI and Xpeng Inc. XPEV traded lower in Hong Kong on Wednesday.

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded almost 2.4% lower at HKD 157.80 in Hong Kong, while technology company Baidu’s shares have lost 2.8% to HKD 157.40 and e-commerce company JD.Com’s shares are down 0.7% to HKD 312.00.

Tech conglomerate Tencent Holdings Inc.’s TCEHY shares have fallen 0.8% to HKD 460.40.

Electric vehicle maker Li Auto’s shares have lost 5.4% to HKD 119.10 and peer Xpeng’s shares are down 3.8% to HKD 179.90.

Hong Kong’s benchmark Hang Seng Index opened lower on Wednesday and was down almost 0.9% at the time of writing. The index closed 0.2% lower on Tuesday.

See Also: How To Buy Xpeng Motors (XPEV) Stock

Why Is It Moving? The Hang Seng Index is lower for a seventh straight day amid worries about the rising number of coronavirus cases in mainland China. Embattled property developer China Evergrande Group’s EGRNY debt crisis also weighed on sentiment.

China recorded 93 new symptomatic local cases on Wednesday in the latest wave of COVID-19 outbreaks, while the moving seven-day average of new infections is also on the rise, the South China Morning Post reported.

About half the flights to and from Beijing were canceled Tuesday after the city tightened travel restrictions due to the spike in coronavirus cases, CNBC reported, citing aviation industry data site VariFlight.

Meanwhile, property developers in China are struggling to find potential home buyers after Beijing intensified its borrowing crackdown on the sector, as per a report by Bloomberg.

Shares of Chinese companies closed notably lower in U.S. trading on Tuesday even as the major averages in the U.S. closed at record highs.

Alibaba’s shares closed almost 4.3% lower, while Nio’s shares ended higher by 1.1%.

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