Alibaba and Other Tech Stocks Fall Even As Hang Seng Rebounds From 21-Month Low

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

What’s Moving: Baidu rose less than 1% in Hong Kong, while shares of the other Chinese tech companies traded lower in a range between 1% and 3%.

Chinese electric vehicle maker Nio Inc.’s NIO newly-launched electric sedan ET5, which will compete with Tesla Inc.’s TSLA Model 3, has become its most pre-ordered model, it was reported on Monday, citing cnEVpost.

Meanwhile, Chinese firms trading in the U.S. must make more specific and prominent disclosures about the risks they can pose for investors, the U.S. Securities and Exchange Commission (SEC) announced Monday.

See Also: How To Buy Alibaba (BABA) Stock

Hong Kong’s benchmark Hang Seng Index opened higher on Tuesday and was up 0.5% at the time of writing. The index closed 1.9% lower on Monday. 

Why Is It Moving? The Hang Seng Index rose as stocks attempted recovery from a 21-month low on Monday.

Chinese commercial banks have lowered borrowing costs for the first time in 20 months to offset the impact of the economic slowdown, Bloomberg reported.

The move comes as the People’s Bank of China (PBOC) reduced the one-year loan prime rate (LPR) from 3.85% to 3.8% on Monday.

China has urged state-owned and large private property companies to acquire real estate projects from troubled developers, as per a report by Reuters, citing the official China Securities Journal.

Nevertheless, investors remained cautious amid China’s continuing crackdown on the tech sector.  

One of China’s top livestream influencers Viya, whose real name is Huang Wei, was fined a record $210 million for tax evasion, the South China Morning Post reported.

Shares of Chinese companies closed sharply lower in U.S. trading on Monday after the major averages in the U.S. ended notably lower as the rapidly spreading Omicron variant of the coronavirus raised concerns about the global economic recovery.

Alibaba’s shares closed 5.8% lower, while Nio’s shares ended lower by 6.1%.

Read Next: Alibaba Analyst Thinks Management Willing To Take Bold Measures To Rebuild Shareholder Value