Major Chinese Companies Trade Lower as Concerns of Chinese Economy Slowing Down Weigh on Market

The skyline in Shanghai, China, on Sept. 13, 2021. Chen Si/AP Photo

Shares of Alibaba Group Holding Limited, Tencent Holdings Inc., Baidu Inc., JD.Com Inc., Li Auto Inc., and Xpeng Inc. are all trading lower in Hong Kong on Thursday.

What’s Moving

Chinese e-commerce giant Alibaba’s shares traded 1.6 percent lower at HKD 158.60 in Hong Kong, while technology company Baidu’s shares have fallen 1.8 percent to HKD 158.40 and e-commerce company JD.Com’s shares have lost 1 percent to HKD 304.80.

Tencent Holdings Inc.’s shares are down 3 percent at HKD 469.00 after the company reported third-quarter earnings results that missed analysts’ expectations amid Beijing’s regulatory crackdown on Big Tech.

Meanwhile, a Chinese regulator last week summoned 16 e-commerce platform operators, including Alibaba and Meituan, to warn them against “unfair competition” activities during this year’s Singles’ Day festival on Thursday, the South China Morning Post reported.

Electric vehicle maker Li Auto’s shares have lost 0.9 percent to HKD 116.20 and peer Xpeng’s shares have fallen 0.5 percent to HKD 174.00.

Hong Kong’s benchmark Hang Seng Index opened lower on Thursday and was down 0.3 percent at the time of writing. The index closed 0.7 percent higher on Wednesday, extending gains to a second straight session.

Why Is It Moving?

The Hang Seng Index is lower after attempting a recovery on news that China Evergrande Group averted default by making interest payments on three dollar bonds.

Worries about rising inflation and a weakening Chinese economy weighed on the market.

Several bondholders of Evergrande said they have received interest payments of the three bond tranches that had a total of more than $148 million in interest payments, Reuters reported, citing Chinese media outlet Cailianshe.

Meanwhile, Hong Kong has ordered the quarantine of 120 school students and recommended a school to shut down after the father of one of the students tested positive for COVID-19, as per a report by Bloomberg.

Shares of Chinese companies closed mixed in U.S. trading on Wednesday after the major averages in the U.S. closed in negative territory.

Alibaba’s shares closed almost 2.4 percent higher, while Nio’s shares ended lower by 2.7 percent.

By Madhukumar Warrier 

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