Alibaba Falls But These Stocks Are Striking Major Gains In Hong Kong As Hang Seng Rebounds

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

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 1.3% lower at HKD 125.70 in Hong Kong, while peer JD.Com’s shares were flat at HKD 340.20 amid worries about the impact of the COVID-19 Omicron variant on the holiday shopping season.

See Also: How To Buy Alibaba (BABA) Stock

Tech conglomerate Tencent’s shares have risen 2.4% to HKD 470.40 and technology company Baidu’s shares are up 1.9% to HKD 147.80.

Electric vehicle maker Xpeng’s shares have gained 7.0% to HKD 217.20, while Li Auto’s shares have advanced 5.2% to HKD 138.00. Li Auto reported better-than-expected financial results for the third quarter on Monday.

Hong Kong’s benchmark Hang Seng Index opened higher on Wednesday and was up 1.4% at the time of writing. The index closed almost 1.6% lower on Tuesday.

Why Is It Moving? The Hang Seng Index rose after three days of losses as bargain hunters loaded up on beaten-down tech stocks.

Investors shrugged off data that showed China’s factory activity contracted in November for the first time in three months. The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) fell to 49.9 in November from 50.6 in the previous month.

Casino stocks continued to be weighed down by the regulatory crackdown on Macau casino operators.

Trading in shares of Suncity Group Holdings Limited were again halted on Wednesday, after a one-day resumption saw its shares tumble more than 48% on Tuesday.

Suncity has closed all VIP gaming rooms in Macau after the company's CEO Alvin Chau Cheok-wa was arrested by regulators for illegal gambling operations, Reuters reported.

Galaxy Entertainment Group Limited GXYEF and Sands China Ltd. SCHYF also traded lower by more than 3% each following the news.

Meanwhile, former Japanese Prime Minister Shinzo Abe has warned China that Japan and the U.S. could not stand by if Beijing attacked Taiwan, according to a report by Reuters.

Shares of Chinese companies closed mostly lower in U.S. trading on Tuesday after the major averages in the U.S. ended sharply lower.

Alibaba’s shares closed 3.1% lower, while Nio’s shares ended lower by almost 3.3%.

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