Alibaba slips as executives summoned, China’s growth pace slows – Nio, EV stock trend down

Shares of major U.S.-listed Chinese companies traded mixed in Hong Kong on Friday, with tech heavyweights like Alibaba Holdings Group BABA, Baidu Inc. BIDU, Inc. J.D.and Tencent Holdings TCEHY being a major obstacle.

Against the weakness, electric vehicle stocks gained, with Xpeng Inc. XPEV, Nio Inc. NIOand Li Auto Inc LI trading up to 2%.

How big tech and EV stocks are doing in Hong Kong today
Shares Movement (+/-)
Ali Baba -2.67%
Baidu -2.63%
Tencent -0.84% -0.33%
Nio 2.11%
Xpeng 1.95%
Li-Auto 2.52%

Shares of these Chinese companies ended Thursday on US exchanges.

Summary of global markets: The reference Hang Seng Index was trading down 0.69% after paring early losses.

In the United States, the Dow Jones Industrial Average ended down 0.46% on Thursday as investors weighed the scale of expected Fed rate hikes and disappointing results from major banks.

Friday, Shanghai SSE composite index gained 0.16%, Japan Nikki 225 increased by 0.50%, while Singapore Clever SGX exchanged quietly.

Check out more Benzinga coverage in Europe and Asia by Next this link.

Macro-factors: Struggling to shake off the impact of COVID-19 restrictions, China’s economy grew a meager 0.4% – below market expectations – in the second quarter from a year earlier.

However, retail sales rebounded in June and rose 3.1% from an earlier slump, beating analysts’ expectations of no growth from a year earlier. The unemployment rate in China’s 31 largest cities fell from pre-pandemic highs to 5.8% in June.

China’s central bank refrained from lowering a key rate, keeping its one-year medium-term loans unchanged.

Real estate and banking stocks also fell as mainland China’s housing market bottomed out amid COVID woes.

Company in the news: Alibaba executives have been summoned by authorities investigating the theft of police data. Cybersecurity firms said Alibaba’s cloud platform that hosted the Shanghai police database was using outdated systems that lacked the ability to set a password, according to the Wall Street Journal.

Internet giant Tencent has reportedly shut down one of its two non-fungible token (NFT) platforms following government restrictions, according to a local daily.

Painting hopes for peers like Nio, Xpeng and Li Auto, warren buffet-automotive giant supported BYD Co Ltd BYDDF said it expects net profit attributable to shareholders of RMB 2.8 billion to 3.6 billion ($533 million) in the first half, up nearly 138.59 percent to 206.76 % compared to the previous year.

Photo by Maurice NORBERT on Shutterstock

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