Alibaba, Tencent and JD Lead Hang Seng Higher On China Regulatory Easing Optimism; Nio Rivals Li Auto, Xpeng Also Strike Gains

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

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 3.2% higher at HKD 125.10 in Hong Kong, while peer JD.Com’s shares have risen almost 1% to HKD 315.20.

Alibaba is scheduled to hold its virtual investor day event on Dec. 16 and Dec. 17.

See Also: How To Buy Alibaba (BABA) Stock

Tech conglomerate Tencent’s shares have gained 2.7% to HKD 476.00 and technology company Baidu’s shares have risen 1.3% to HKD 147.80.

Electric vehicle maker Li Auto’s shares traded 4.3% higher at HKD 127.90 and peer Xpeng’s shares are up 3.4% to HKD 186.40.

Hong Kong’s benchmark Hang Seng Index opened higher on Monday and was up 1.1% at the time of writing. The index snapped a three-day winning streak and closed almost 1.1% lower on Friday.

Why Is It Moving? The Hang Seng Index rose after China’s policymakers pledged to ensure economic stability next year and also hinted at easing regulations on Big Tech companies following a regulatory crackdown this year.

The annual Central Economic Work Conference concluded in Beijing on Friday, with policy markets stressing on efforts to maintain economic stability next year while pursuing progress, the state-run Xinhua News Agency reported.

Easing worries about the impact of the Omicron coronavirus variant on the global economy also lifted the market. Investors also looked ahead to key central bank policy meetings this week, including the Federal Reserve and the European Central Bank.

Meanwhile, Chinese artificial intelligence start-up SenseTime Group will withdraw its $767 million initial public offering (IPO) in Hong Kong on Monday and also update the risk factors in its prospectus after being placed on a U.S. investment blacklist last week, Reuters reported.

Shares of Chinese companies closed mostly higher in U.S. trading on Friday after the major averages in the U.S. ended at record highs. This was despite the Labor Department reporting a 6.8% increase in the consumer price index (CPI) in the month of November, the fastest inflation growth since 1982.

Alibaba’s shares closed 0.9% higher, while Nio’s shares ended higher by 0.6%.

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