Why Alibaba, JD And Other Tech Stocks Are Crashing In Hong Kong Today

Shares of U.S.-listed Chinese tech companies traded notably lower in Hong Kong on Monday, dragging the benchmark Hang Seng Index into negative territory.

Why Is It Moving? The Hang Seng Index was down 0.9% at the time of writing, as investors turned cautious ahead of the U.S. Federal Reserve’s monetary policy meeting scheduled for this week.

Worries about tighter monetary policy by the Federal Reserve and surging COVID-19 cases in Hong Kong that could impact further economic reopening in the financial hub weighed on the market.

Hong Kong confirmed 140 new coronavirus infections on Sunday, the most in a single day in 18 months, the South China Morning Post reported.

See Also: How To Buy Alibaba (BABA) Stock

What’s Moving: U.S.-listed Chinese tech companies traded mostly lower following the news.

• JD.com Inc. JD – down 5.3%
• Alibaba Group Holding Limited BABA - down 5.1%
• Xpeng Inc. XPEV - down 4.9%
• Baidu Inc. BIDU - down 3.8%
• Li Auto Inc. LI - down 3.5%
• Tencent Holdings Limited TCEHY - down 1.9%

Shares of China Evergrande Group EGRNY have gained more than 7% after the embattled developer said has appointed an official from a unit of state asset manager China Cinda Asset Management to its board as non-executive director.

A report by Bloomberg noted that China Evergrande faces a deadline for coupon payments totalling $352.5 million on Monday.

It was reported that Tesla Inc. TSLA CEO Elon Musk shared an image of Graffiti art on the Giga Berlin factory wall on Twitter, triggering speculation that the plant may soon begin operations.

The start of production at Giga Berlin is very crucial for augmenting Tesla’s production capacity since it currently exports made-in-China cars to Europe.

Shares of Chinese companies, including electric vehicle maker Nio Inc. NIO, closed sharply lower in U.S. trading on Friday after the major averages in the U.S. ended lower for the fourth straight day.

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