Alibaba Group Holding Limited BABA traded in the green in the Hong Kong markets Thursday alongside BYD Company Limited BYDDF, Tencent Holdings Limited TCEHY, and Nio Inc. NIO rivals Xpeng Inc XPEV and Li Auto Inc LI.
What Happened: Jack Ma-led Alibaba’s shares rose 2.24% higher at HKD 164.20 in Hong Kong, while Warren Buffett-backed automaker BYD’s shares rose almost 6.5% to HKD 311.80.
Shares of automakers Xpeng and Li Auto rose 1.24% and 6.24% to HKD 122.20 and HKD 192.30 respectively.
Tencent shares were up almost 1.6% to HKD 476.60 at press time.
The Hong Kong market reacted positively to the U.S. Federal Reserve’s tapering announcement on Wednesday.
The Hang Seng Index was up 0.27% at 25,092.23 at press time. The index opened higher at 25,141.10 on Wednesday after ending the previous trading session at 25,024.75.
See Also: How To Buy Alibaba (BABA) Stock
Why It Matters: On Wednesday, Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor said business travel would get priority if the border between mainland China and Hong Kong reopens, reported the South China Morning Post.
Restricted travel between the mainland and Hong Kong amid the rising number of coronavirus cases in China weighed on investor sentiment earlier in the week.
On Thursday, Nikkei reporter Nina Xiang wrote that the large amounts of money pledged by Alibaba and Tencent to Chinese President Xi Jinping’s “common prosperity” drive will further entrench their existing dominant positions through strategic “philanthrocapitalism.”
An example of such philanthrocapitalism is Alibaba’s goal to create agricultural product aggregation centers that tap into its existing e-commerce platforms Taobao and Tmall, as per Nikkei.
Read Next: Alibaba Needs To Pay More Heed As China Ramps Up Crackdown On Fintech
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
