Alibaba, JD, Baidu And Nio Rival Xpeng Dip In Mixed Hong Kong Market; Li Auto Strikes Gains

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

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 3.3% lower at HKD 121.50 and peer JD.Com’s shares are down 0.5% to HKD 339.60 in Hong Kong amid worries about Beijing’s crackdowns on overseas listings.

China is eyeing a ban on domestic companies that are seeking to apply for overseas listing through variable interest entities, or VIEs, it was reported, citing Bloomberg.

See Also: How To Buy Alibaba (BABA) Stock

Technology company Baidu’s shares have fallen 0.9% to HKD 146.40, while tech conglomerate Tencent’s shares were flat at HKD 469.40.

Electric vehicle maker Xpeng’s shares have lost 4.3% to HKD 208.60, while Li Auto’s shares have gained 0.7% to HKD 143.30 after the company said its deliveries in November rose nearly three-fold to an all-time high.

Hong Kong’s benchmark Hang Seng Index rebounded after a weak start on Thursday, but has pared gains and was flat at the time of writing. The index closed almost 0.8% higher on Wednesday.

Why Is It Moving? The Hang Seng Index pared gains after initial optimism about the long-awaited border reopening with mainland China.

Hong Kong authorities are set to unveil a COVID-19 health code system on Thursday that will allow travellers from financial hub to cross the border to Guangdong province and Macau without having to undergo quarantine, the South China Morning Post reported.

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

Shares of Suncity Group Holdings Limited, which resumed trading in Hong Kong on Thursday, tumbled more than 20% despite the company clarifying that the junket business in Macau was operated by a firm wholly owned by its former chairman Alvin Chau, and not by the group.

Meanwhile, Chinese property developer Kaisa Group Holdings Ltd is unlikely to win bondholders' approval to extend the maturity of a $400 million bond due next week, Reuters reported, citing analysts.

Gaming hardware company Razer Inc.’s RAZFF shares fell more than 7% in Hong Kong after a consortium that includes the company’s co-founder Tan Min-Liang offered to take the company private for HKD 10.79 billion ($1.38 billion).

Shares of Chinese companies closed mostly lower in U.S. trading on Wednesday after the major averages in the U.S. ended sharply lower. The Center for Disease Control and Prevention confirmed the first case of COVID-19 caused by the new Omicron variant in the U.S.

Alibaba’s shares closed almost 4% lower, while Nio’s shares ended lower by 2.1%.

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