What’s Moving
Chinese e-commerce giant Alibaba’s shares traded 1.8 percent higher at about $21.11 in Hong Kong, while technology company Baidu’s shares have risen 0.6 percent to about $21.51 and e-commerce company JD.Com’s shares have gained 0.4 percent to about $43.30.Tech conglomerate Tencent’s shares are up 1.7 percent to about $64.20.
Electric vehicle maker Xpeng’s shares lost 0.6 percent to about $24.35, while peer Li Auto’s shares gained almost 0.3 percent to about $15.32.
Why Is It Moving?
The Hang Seng Index advanced as investors monitored a virtual summit between U.S. President Joe Biden and Chinese President Xi Jinping on Tuesday.The Biden-Xi summit—the first ever between the two leaders since Biden assumed office—is aimed at reducing tensions between the world’s two largest economies.
Optimism that Chinese policymakers will ease the regulatory clampdown on the troubled real estate sector also boosted sentiment.
Chinese state-owned property developers, including China Merchants Shekou Industrial Zone Holdings Co. and Poly Developments & Holdings Group Co., received approval to sell a combined $1.3 billion of local bonds this week, Bloomberg reported.
Meanwhile, heavily indebted property developer China Evergrande Group’s chairman Hui Ka Yan is freeing up funds from his personal luxury assets to help pay the company’s bondholders, as per a report by Reuters, citing regulatory filings and a person with knowledge of the matter.
Shares of Chinese companies closed lower in U.S. trading on Monday after the major averages in the United States closed little changed in lackluster trading.
Alibaba’s shares closed almost 0.2 percent lower, while Nio’s shares ended lower by 4.9 percent.
