Shares of Alibaba Group Holding Limited BABA, Tencent Holdings Inc. TCEHY, Baidu Inc. BIDU, Xpeng Inc. XPEV and Li Auto Inc. LI rose in Hong Kong on Tuesday, while JD.Com Inc. JD traded lower.
What’s Moving: Chinese e-commerce giant Alibaba’s shares traded almost 8.1% higher at HKD 121.80 in Hong Kong, while peer JD.Com’s shares have lost 1.8% to HKD 300.60.
See Also: How To Buy Alibaba (BABA) Stock
Technology company Baidu’s shares have risen almost 6.2% to HKD 143.10 and tech conglomerate Tencent’s shares are up 1.2% to HKD 453.20.
Electric vehicle maker Li Auto’s shares have gained 2.2% to HKD 120.70 and peer Xpeng’s shares have advanced 1.4% to HKD 183.00.
Hong Kong’s benchmark Hang Seng Index opened higher on Tuesday and was up 1.2% at the time of writing. The index closed almost 1.8% lower on Monday.
Why Is It Moving? The Hang Seng Index traded higher after the People’s Bank of China (PBOC) said it would cut the reserve requirement ratio for major commercial banks by 0.5 percentage points.
The RRR cut – the second by the PBOC this year – is expected to release $188 billion worth of long-term liquidity into the banking system.
In addition, China’s policy makers on Monday vowed to stabilize the economy and signalled the easing of some real estate curbs.
Shares of China Evergrande Group EGRNY rose almost 3.9% on Tuesday after the heavily-indebted property developer said it has formed a risk management committee that will play an important role in “mitigating and eliminating the future risks” of the group.
Investors also awaited news on whether Evergrande has paid dues totaling $82.5 million after a 30-day grace period ended on Monday.
A group of Kaisa Group Holdings Ltd. bondholders sent the company a formal forbearance proposal that is intended to help the beleaguered developer avoid a formal default on a $400 million bond due Tuesday, Bloomberg reported, citing people familiar with the matter.
Shares of Chinese companies closed mostly higher in U.S. trading on Monday after the major averages in the U.S. ended notably higher as concerns about the Omicron variant of the coronavirus eased amid indications the new strain causes milder symptoms.
Alibaba’s shares closed 10.4% higher, while Nio’s shares ended higher by almost 0.6%.
Read Next: Are Chinese Stocks Still A Good Investment?
© 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.
