Alibaba Crashes In Hong Kong After Weak Earnings Report, Rival JD Strikes Gains; EV Stocks Xpeng, Li Auto Plunge Too

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

What’s Moving: Alibaba’s shares have lost 10.3% to HKD 140 in Hong Kong after the Chinese e-commerce giant reported weaker-than-expected earnings results for the second quarter and also issued a below-consensus forecast for fiscal 2022.

Technology company Baidu’s shares traded 3.1% lower at HKD 151.50 00 and tech conglomerate Tencent’s shares are down 1.2% to HKD 490.80.

See Also: How To Buy Alibaba (BABA) Stock

Meanwhile, JD’s shares have gained 5.2% to HKD 339.80 after the e-commerce company reported quarterly results that beat analysts’ expectations.

Electric vehicle maker Li Auto’s shares have lost 5.1% to HKD 120.70 and peer Xpeng’s shares are down 3.5% to HKD 183.90.

Hong Kong’s benchmark Hang Seng Index opened lower on Friday and was down 1.7% at the time of writing. The index closed almost 1.3% lower on Thursday.

Why Is It Moving? The Hang Seng Index extended losses to a third straight day amid weak earnings results from Chinese tech giants, including Alibaba, following Beijing’s regulatory crackdown on Big Tech and slowing economic growth in China.  

Food delivery platform operator Meituan and short video app company Kuaishou Technology are among the major companies expected to report earnings next week.

Worries about China’s troubled property sector also weighed on the market.

Shares of property management services company Country Garden Services Holdings Co. Limited have tumbled more than 12%. The company has raised HKD 8 billion ($1 billion) from the sale of 150 million new shares, Reuters reported.

Meanwhile, travellers from Hong Kong will be permitted to enter mainland China without quarantine earlier than expected, starting from the first week of December, the South China Morning Post reported.

Shares of Chinese companies closed notably lower in U.S. trading on Thursday after the major averages in the U.S. closed on opposite sides of the unchanged line.

Alibaba’s shares closed 11.1% lower, while Nio’s shares ended lower by almost 3.2%.

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