Why Alibaba, Nio, JD Stocks Are Taking Hang Seng Higher Today
Shares of U.S.-listed Chinese companies traded higher in Hong Kong on Friday, after ending the previous session deep in the red.
While tech stocks like Alibaba Group Holding Ltd BABA, JD.Com JD, Tencent Holdings TCEHY, and Baidu Inc BIDU traded as high as 6%. In the EV segment, Xpeng Inc XPEV led the rally, followed by Nio Inc NIO.
Shares of these companies ended mixed in U.S. markets overnight.
Global Markets Recap: At press time, Hong Kong’s benchmark Hang Seng index gained about 1.83% following positive cues from the global markets.
U.S. indices ended Thursday’s session mixed. Elsewhere, Japan’s Nikkei 225 topped nearly 2.61%, while Australia’s ASX 200 was up 1.40%, and Shanghai’s SSE Composite Index gained 0.31%.
Macro Factors: According to Bloomberg, Fed Chair Jerome Powell reaffirmed that the central bank is likely to raise interest rates by a half basis point at each of its next two meetings, while pushing back against speculation of more aggressive increases.
As panic buying gripped the Chinese capital on Thursday, officials denied that Beijing would be subjected to a lockdown even as some districts saw tighter curbs, Reuters reported.
Company In News: China’s top political advisory body looks to host a forum next week with some of the nation’s largest private-sector firms, including Baidu.
JD.Com’s fintech arm JD Technology has been forced to delay an up to $2 billion Hong Kong IPO because domestic regulatory approval for the listing has not been forthcoming, according to Reuters.