Shares of U.S.-listed Chinese tech companies traded notably lower in Hong Kong on Thursday, dragging the benchmark Hang Seng Index into negative territory.
Why Is It Moving? The Hang Seng Index was down 2.6% at the time of writing, after the U.S. Federal Reserve indicated it could start raising interest rates as soon as March even as it kept the benchmark interest rate unchanged Wednesday.
The Fed’s hawkish posture weighed on technology stocks.
Worries about rising COVID-19 cases in Hong Kong, which is grappling with a fifth wave of infections, also dampened investor sentiment.
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What’s Moving: Shares of U.S.-listed Chinese tech companies traded notably lower.
- Alibaba Group Holding Limited (NYSE: BABA) – down 6.2%
- JD.com Inc. (NASDAQ: JD) – down 5.1%
- Li Auto Inc. (NASDAQ: LI) – down 4.6%
- Xpeng Inc. (NYSE: XPEV) – down 4.8%
- Baidu Inc. (NASDAQ: BIDU) – down 3.3%
- Tencent Holdings Limited (OTC: TCEHY) – down 2.6%
- Some analysts have cut their price targets on Alibaba’s stock ahead of the e-commerce giant’s quarterly earnings results that may be announced as early as next week.
Heavily indebted property developer China Evergrande Group (OTC: EGRNY) said during its investor call on Wednesday that it plans to have a preliminary restructuring proposal in place within the next six months.
Shares of Chinese companies, including electric vehicle maker Nio Inc. (NYSE: NIO), closed lower in U.S. trading on Wednesday after the major averages in the U.S. ended mostly lower.
Meanwhile, Apple Inc. (NASDAQ: AAPL) has emerged as China’s top smartphone vendor for the first time in six years, it was reported on Wednesday, citing data from Counterpoint Research.
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