Shares of major U.S.-listed Chinese companies fell in Hong Kong on Monday, with tech giants like Alibaba Group Holdings BABA, Tencent Holdings TCEHY, Baidu Inc BIDU, and JD.com JD trading deep in the red.
In the electric vehicle segment, Nio Inc NIO and Xpeng Inc XPEV shed as much as 4%, while Li Auto Inc LI traded on a muted note.
Shares of these Chinese companies ended up mixed on Friday on U.S. bourses.
Global Markets Recap: At press time, the benchmark Hang Seng Index was trading 2.62% lower, dragged by weaker tech stocks.
Elsewhere, Japan’s Nikkei 225 lost 2.64%, while Shanghai’s SSE Composite Index shed 0.88%, and Singapore’s SGX Nifty fell 0.72%.
Macro Factors: The U.S. Federal Reserve is expected to tighten monetary policy again after hotter-than-expected inflation data. It is expected to boost the fed fund rate by at least half a point, CNBC reported.
China is re-imposing COVID-19 restrictions just weeks after it lifted a strict lockdown in the financial capital. According to Bloomberg, Beijing’s local government said an outbreak linked to a popular bar is proving more difficult to control than previous clusters.
Company In News: US Tiger Securities analyst Bo Pei has maintained a Buy rating but lowered the price target to $35 a share from $40 on Nio after the company reported a wider first-quarter loss.
Nio has also sent out an invitation for a virtual product launch event to be held on June 15. Although the company did not reveal any details about the event in the invite, it is widely expected that the ES7 and 2022 models of the ES6, ES8, and EC6 will likely be announced.