Alibaba Dips While Tesla Rivals Li Auto, Xpeng Strike Gains In Mixed Hong Kong Market

Shares of U.S.-listed Chinese tech companies — with the exception of Chinese e-commerce giant Alibaba Group Holding Limited BABA — traded higher in Hong Kong on Tuesday, even as the benchmark Hang Seng Index drifted lower after a positive start.

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The Macro Factors: The Hang Seng Index slipped into negative territory after opening higher and was flat at the time of writing.

Data showing China’s factory activity expanded in February and beat expectations failed to boost sentiment.

The official manufacturing Purchasing Managers’ Index (PMI) rose to 50.2 in February from 50.1 in January, the South China Morning Post reported, citing data from the National Bureau of Statistics.

The Caixin/Markit manufacturing PMI rose to 50.4 in February from 49.1 in January, also beating expectations.

Worries about lockdowns in Hong Kong after the financial hub recorded more than 34,000 new cases on Monday weighed on the market.

Hong Kong is planning to enforce a lockdown to ensure that a mandatory COVID-19 testing drive scheduled to be held later this month is effective, it was reported by Bloomberg, citing local media.

Companies In The News: Tesla Inc. TSLA rival Nio Inc. NIO — which has secured approval for a secondary listing in Hong Kong — plans to report fourth-quarter earnings a month late due to additional time required to prepare for capital liquidity disclosures, it was reported on Monday.

Xpeng and Li Auto will report monthly delivery numbers and Baidu — the largest Internet search engine in China —will report its financial results for the fourth quarter on Tuesday.

Shares of Chinese companies closed mixed in U.S. trading on Monday even as the major averages also ended on opposite sides of the unchanged line.

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