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Benzinga
Benzinga
World
Madhukumar Warrier

Alibaba, Tech Peers Drag Hong Kong Shares Down For Fourth Day — What's Fraying Investor Nerves?

Shares of U.S.-listed Chinese tech companies slumped in Hong Kong on Wednesday and weighed on the benchmark Hang Seng Index, which extended losses to a fourth straight day.

Stock Movement (+/-)
Alibaba Group Holding Limited (NYSE:BABA) -3.9%
Li Auto Inc. (NASDAQ:LI) -3.5%
Tencent Holdings Limited (OTC:TCEHY) -2.8%
JD.com Inc. (NASDAQ:JD) -1.7%
Baidu Inc. (NASDAQ:BIDU) -1.4%
Xpeng Inc. (NYSE:XPEV) -0.4%

See Also: How To Buy Alibaba (BABA) Stock

The Macro Factors: The Hang Seng Index pared gains after opening higher and was down 2.1% at press time.

Worries about a surge in inflation due to the energy crisis stemming from the Russia-Ukraine war weighed on the market. U.S. President Joe Biden on Tuesday announced a ban on Russian oil imports.

U.S. crude oil futures gained 2.1% to $126.41 per barrel in Asian trades on Wednesday.

Surging COVID-19 cases in Hong Kong also dampened risk appetite, with a Bloomberg report saying that it plans to open more isolation facilities for the elderly and has asked China to send medical teams.

China’s producer price index (PPI) rose 8.8% year-on-year in February, but eased from a 9.1% growth in January, Reuters reported, citing data from the National Bureau of Statistics. Consumer prices climbed 0.9% in February, unchanged from a month earlier.

Companies In The News: Morgan Stanley analyst Eddy Wang lowered the brokerage's price target on e-commerce giant JD.Com to $85 from $98, but kept an 'overweight' rating on its stock. The analyst noted that JD.Com delivered much more resilient revenue growth than its peers in 2021.

Elon Musk-led Tesla Inc. (NASDAQ: TSLAreported lower sales of China-made vehicles in February but was able to weather the industrywide softness fairly well compared to its Chinese rivals.

Shares of Chinese companies, including electric vehicle maker Nio Inc. (NYSE: NIO), closed lower in U.S. trading on Tuesday after the major averages ended in negative territory.

Read Next: Apple's 'Peek Performance' Reveals: iPhone SE, Versatile iPad Air, Powerful Chip, Mac Studio, MLB And More

 

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