Alibaba, Tesla Rivals Xpeng, Li Auto Plunge In Hong Kong As Concerns Rise Over Russia Invading Ukraine

Shares of U.S.-listed Chinese tech companies traded notably lower in Hong Kong on Tuesday, dragging the benchmark Hang Seng Index into negative territory.

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

The Macro Factors: The Hang Seng Index was down 3.0% at the time of writing — extending losses to a third straight day — amid worries that rising tensions between Russia and Ukraine could escalate into a major war.

Russian President Vladimir Putin ordered troops into two breakaway regions of eastern Ukraine after recognizing them as independent on Monday, Reuters reported. U.S. President Joe Biden responded to Putin’s move by ordering sanctions against the separatist Donetsk and Luhansk regions.

Meanwhile, the U.N. Security Council is expected to address Russia’s move in an emergency session requested by the U.S. and other countries.

Worries about a new round of regulatory restrictions on Chinese tech companies also weighed on the market.

China issued new guidelines asking Meituan and other food delivery platforms to cut restaurant fees to help businesses in regions hit hardest by the COVID-19 pandemic, it was reported on Friday, citing Bloomberg.

Companies In The News: Alibaba is expected to provide further details about the impact of the Chinese regulatory crackdown on its business when the e-commerce company reports its quarterly financial results on Feb. 24.

Baidu is set to announce its quarterly results on March 1.

Tesla Inc. TSLA rival Xpeng has been in the news lately over Cathie Wood-led Ark Invest's frequent buys in the stock.

Shares of Chinese companies closed notably lower in U.S. trading on Friday after the major averages ended firmly negative amid fears Russia will imminently invade Ukraine.

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