Why Alibaba, Tesla Rival Xpeng And Other Tech Stocks Are Shooting Up In Hong Kong Today

Shares of U.S.-listed Chinese tech companies traded notably higher in Hong Kong on Wednesday, lifting the benchmark Hang Seng Index firmly into positive territory. 

Why Is It Moving? Shares of Alibaba and other tech companies rebounded after two days of losses that were seen as overdone.

Alibaba’s shares had fallen in the previous two sessions amid worries about the Chinese e-commerce giant’s plan to register new American Depositary Shares (ADS).

Chinese electric vehicle maker Xpeng, seen as a Tesla Inc. TSLA rival, announced the inclusion of its shares in the Shenzhen-Hong Kong Stock Connect program and noted that the move would help expand the company’s investor base.

See Also: How To Buy Xpeng Motors (XPEV) Stock

The Hang Seng Index was up 2.0% at the time of writing, rebounding from sharp losses in the previous session.

Sentiment received a boost after China clarified the role of private capital in economic growth.

The state-run People’s Daily said in a commentary that China should “support and guide” the health development of capital, adding that steps to prevent its “barbaric growth” did not mean that China is against private capital, the South China Morning Post reported.

Meanwhile, the Hong Kong government on Tuesday announced its most stringent social-distancing rules as part of its efforts to contain the fifth wave of coronavirus infections.

This includes reducing the maximum number of people that can gather in public places from four to two people and the iaunch of a new “vaccine pass.”

Shares of Chinese companies, including electric vehicle maker Nio Inc. NIO, closed notably higher in U.S. trading on Tuesday after the major averages in the U.S. ended firmly in positive territory.

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