Alibaba, Tencent And JD Lead Hang Seng Higher As Investors Focus On China-US Summit

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

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 1.8% higher at HKD 164.40 in Hong Kong, while technology company Baidu’s shares have risen 0.6% to HKD 167.50 and e-commerce company JD.Com’s shares have gained 0.4% to HKD 337.00.

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Tech conglomerate Tencent’s shares are up 1.7% to HKD 500.00.

Electric vehicle maker Xpeng’s shares have lost 0.6% to HKD 189.60, while peer Li Auto’s shares have gained almost 0.3% to HKD 119.30.

Hong Kong’s benchmark Hang Seng Index opened higher on Tuesday and was up almost 1.1% at the time of writing. The index closed almost 0.3% higher on Monday, extending gains to a fifth straight session.

Why Is It Moving? The Hang Seng Index advanced as investors monitored a virtual summit between U.S. President Joe Biden and Chinese President Xi Jinping on Tuesday.

The Biden-Xi summit - the first ever between the two leaders since Biden assumed office — is aimed at reducing tensions between the world’s two largest economies.

Optimism that Chinese policymakers will ease the regulatory crackdown on the troubled real estate sector also boosted sentiment.

Chinese state-owned property developers, including China Merchants Shekou Industrial Zone Holdings Co. and Poly Developments & Holdings Group Co., have received approval to sell a combined RMB 8.6 billion ($1.3 billion) of local bonds this week, Bloomberg reported.

Meanwhile, heavily indebted property developer China Evergrande Group’s EGRNY chairman Hui Ka Yan is freeing up funds from his personal luxury assets to help pay the company’s bondholders, as per a report by Reuters, citing regulatory filings and a person with knowledge of the matter.

Shares of Chinese companies closed lower in U.S. trading on Monday after the major averages in the U.S. closed little changed in lackluster trading.

Alibaba’s shares closed almost 0.2% lower, while Nio’s shares ended lower by 4.9%.

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