Why Alibaba, Tesla Rivals Xpeng, Li Auto Are Striking Major Gains In Hong Kong Today

Shares of U.S.-listed Chinese tech companies advanced in Hong Kong on Wednesday, lifting the benchmark Hang Seng Index into positive territory.

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

The Macro Factors: The Hang Seng Index was up 1.3% at the time of writing, as stocks attempted a rebound after three days of losses.

China inflation eased in January, raising hopes for more policy easing measures by Beijing. Risk appetite also improved amid easing worries about Russia-Ukraine tensions

China’s official consumer price index (CPI) rose by 0.9% in January from a year earlier, down from an increase of 1.5% in December, Reuters reported, citing data from the National Bureau of Statistics.

The country's producer price index (PPI) increased 9.1% in January from a year earlier, slower than a 10.3% gain in December. The data trailed analysts’ estimates.

Meanwhile, Chinese President Xi Jinping said that the Hong Kong government should take up the “main responsibility” to stabilize and control the coronavirus pandemic as soon as possible, as per a report by Bloomberg.

Companies In The News: Alibaba has entered into a collaboration with computer hardware manufacturer Canaan Inc. CAN on artificial intelligence (AI), it was reported, citing CoinDesk.

Cathie Wood-led Ark Investment Management has raised its exposure in Xpeng by acquiring shares estimated to be worth $3.2 million. Xpeng is the only other pure electric vehicle player besides Tesla Inc. TSLA in Ark Invest’s portfolio.

Shares of Chinese companies closed higher in U.S. trading on Tuesday after the major averages ended sharply higher on easing geopolitical concerns following news Russia is pulling back some troops from the Ukrainian border.

Read Next: Tesla Facing Increasing Competition From These 2 Carmakers: Report