Alibaba, JD And Tencent Lead Hang Seng Lower On Earnings, Regulatory Worries; Nio Rivals Xpeng, Li Auto Strike Gains

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

What’s Moving: Alibaba’s shares have lost almost 3.1% to HKD 132.90 in Hong Kong, while tech conglomerate Tencent’s shares have fallen 2.7% to HKD 481.00 on Tuesday. Technology company Baidu’s shares traded 2.2% lower at HKD 144.80.

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JD.Com’s shares have lost 1.3% to HKD 354.60.

Meanwhile, electric vehicle maker Li Auto’s shares have risen 2.2% to HKD 122.50 and Xpeng’s shares have advanced 2.0% to HKD 188.90.

Xpeng will report its third-quarter financial results later today.

NetEase Inc.’s NTES shares are down almost 2% despite the technology company announcing the launch of the Hong Kong initial public offering (IPO) of its music streaming business Cloud Village, which is expected to raise up to $500 million.  

Hong Kong’s benchmark Hang Seng Index opened lower on Tuesday and was down 1% at the time of writing. The index closed almost 0.4% lower on Monday.

Why Is It Moving? The Hang Seng Index extended losses to a fifth day amid worries about weak earnings results from Chinese tech giants following Beijing’s regulatory crackdown on Big Tech.

Food-delivery platform operator Meituan and short-video app company Kuaishou Technology are among the major companies scheduled to report earnings results this week.

Speculation about stiffer regulations by Beijing on tech companies also weighed on sentiment.

China’s market regulator has proposed a long list of responsibilities and said it expects more from “super large platforms” like Alibaba, Tencent and Meituan in the areas of data protection, treatment of workers, and fair competition, it was reported, citing Reuters.

Shares of Chinese companies closed mixed in U.S. trading on Monday. The major averages in the U.S. closed on opposite sides of the unchanged line after President Joe Biden nominated Jerome Powell for a second term as Federal Reserve Chair.

Alibaba’s shares closed almost 2.7% lower, while Nio’s shares ended higher by 7.3%.

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