Why Alibaba Is Falling In Hong Kong Today Even As Wider Market Is Up

Shares of U.S.-listed Chinese tech companies traded mostly lower in Hong Kong on Tuesday, even as the benchmark Hang Seng Index recovered after a weak start.

What’s Moving: Shares of Alibaba Group Holding Limited BABA, Baidu Inc. BIDU, Li Auto Inc. LI and Xpeng Inc. XPEV traded lower in a range of 1% to almost 4%.

JD.Com Inc. JD and Tencent Holdings Inc. TCEHY have risen almost 1% each.

JD.Com said it has opened two robotic shops by the brand name “Ochama” in the Netherlands, marking the Chinese e-commerce giant’s foray into Europe and signaling a potential challenge to Amazon.com Inc. AMZN.

The Hang Seng Index rebounded after a weak start on Tuesday and was up 0.4% at the time of writing. The index closed almost 1.1% higher on Monday. 

See Also: How To Buy Alibaba (BABA) Stock

Why Is It Moving? The Hang Seng Index rose for a fourth straight day but investors turned cautious amid worries about a break-up in Alibaba’s media assets by Chinese regulators.

Weibo — China’s Twitter Inc. TWTR-like social media service — said in a regulatory filing that Alibaba Chairman and Group CEO Daniel Zhang has resigned from its board of directors, while Alibaba Group Chief Marketing Officer Pen Hung Tung has been named as his replacement.

Weibo’s shares traded more than 2% lower following the announcement, while Alibaba’s shares have lost more than 1%.

Alibaba is discussing a possible stake sale in Weibo with state-owned conglomerate Shanghai Media Group, it was reported in December, citing Bloomberg.

Meanwhile, heavily indebted property developer China Evergrande Group EGRNY said that as part of its efforts to cut costs, it has moved from its previous headquarters in Shenzen to its own property in the city.

Hong Kong Chief Executive Carrie Lam said that classes in kindergartens and primary schools in the city will be suspended from Friday through the Lunar New Year holiday following an Omicron outbreak, the South China Morning Post reported.

Shares of Chinese companies closed mostly lower in U.S. trading on Monday even as the major averages in the U.S. ended mixed after reversing earlier losses.

Alibaba’s shares closed almost 1.2% lower, while Nio Inc.’s NIO shares ended lower by 1.3%.

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