Alibaba And Nio Rivals Xpeng, Li Auto Strike Gains In Hong Kong While JD, Tencent Fall As China Debt, Power Crises Remain In Focus

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

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 2.4% higher at HKD 138.60 in Hong Kong, while e-commerce company JD.Com’s shares are down by 0.6% to HKD 274.00 and technology company Baidu’s shares are down about 0.1% to HKD 143.70.

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

Meanwhile, electric vehicle maker Li Auto’s shares have risen 4% to HKD 103.60 and peer Xpeng’s shares have advanced 2.3% to HKD 137.60.

Tech conglomerate Tencent Holdings’ shares are down 0.4% at HKD 448.00.

Hong Kong’s benchmark Hang Seng Index drifted lower after a positive start and is down almost 0.9% at the time of writing. The index closed almost 0.3% higher on Tuesday.

Why Is It Moving? The Hang Seng Index is retreating amid worries about China’s highly-leveraged property sector following China Evergrande Group’s EGRNF debt crisis. The power crisis in China also continued to weigh on investor sentiment.

Ratings agency Fitch Ratings said it has downgraded Chinese property developer Sinic Holdings (Group) Company Limited after some of the company’s subsidiaries missed interest payments on onshore financing arrangements

Meanwhile, the South China Morning Post reported that China is likely to soon give approval to the first batch of real estate investment trusts (REITs) backed by rental homes, as part of efforts to control soaring property prices.

China has ordered its banks to prioritize lending to coal and energy companies to tide over the power crisis and ensure supplies in the winter, as per a report by Bloomberg.

Shares of Chinese companies closed notably higher in U.S. trading on Tuesday after the major averages in the U.S. rebounded following a sell-off in the previous session.

Alibaba’s shares closed 2.5% higher, while Nio’s shares ended higher by 1.4%.

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