What’s Moving
Chinese e-commerce giant Alibaba’s shares traded 0.5 percent lower at HKD 160.30 in Hong Kong, while technology company Baidu’s shares have lost 2.0 percent to HKD 157.70 and e-commerce company JD.Com’s shares are down 0.6 percent to HKD 312.80.Tech conglomerate Tencent Holdings’ shares have fallen 1.9 percent to HKD 486.00.
The tech stocks are trading lower as China’s industry regulator plans to deepen scrutiny on internet companies as part of a six-month campaign, the South China Morning Post reported.
Meanwhile, electric vehicle maker Xpeng’s shares have risen 4.6 percent to HKD 165.40 and Li Auto’s shares traded 1.7 percent higher at HKD 118.10.
Shares of the EV makers are rising after it was reported that peer Nio Inc. will be able to double annual production capacity at its Hefei facility in 2022 following completion of a phased upgrade, citing a report by cnEVpost.
Why Is It Moving?
The Hang Seng Index drifted lower on Monday after data showed that China’s economy grew at the weakest pace in a year in the third quarter as the country grappled with power shortages and a slowdown in property sales.China’s gross domestic product (GDP) grew 4.9 percent in the July-September period from a year earlier, slowing from 7.9 percent in the preceding quarter.
China is able to contain the risks posed to its economy by embattled property developer China Evergrande Group’s debt crisis, People’s Bank of China Governor Yi Gang said, as per a report by Bloomberg.
Shares of Chinese companies closed higher in U.S. trading on Friday as the major averages in the United States closed firmly positive.
