Why Alibaba Is Rising Today Even As Tech Peers Extend Losses In Hong Kong
Shares of U.S.-listed Chinese tech companies — with the exception of Alibaba Group Holding Limited (NYSE:BABA) — extended losses in Hong Kong on Friday, dragging the benchmark Hang Seng Index into negative territory for a second straight day.
Why Is It Moving? The Hang Seng Index was down 0.9% at the time of writing, as investors turned risk averse after by the U.S. Federal Reserve indicated on Wednesday that it could start raising interest rates as soon as March.
Investors also looked ahead to the release of Hong Kong’s gross domestic product (GDP) report for the fourth quarter later today. The financial hub is continuing to struggle with a fifth wave of coronavirus infections.
Alibaba’s shares have rebounded on Friday, after falling sharply in the previous session in reaction to some analysts cutting their price targets on the company’s stock ahead of its quarterly earnings results.
See Also: How To Buy Xpeng Motors (XPEV) Stock
What’s Moving: U.S.-listed Chinese tech companies traded notably lower.
- Xpeng Inc. (NYSE:XPEV) - down 9.7%
- JD.com Inc. (NASDAQ:JD) - down 3.6%
- Li Auto Inc. (NASDAQ:LI) - down 2.3%
- Baidu Inc. (NASDAQ:BIDU) - down 1.1%
- Tencent Holdings Limited (OTC:TCEHY) - down 1.0%
- Alibaba Group Holding Limited (NYSE:BABA) – up 1.2%
Chinese buyout firm Citic Capital Acquisition Corp. (NYSE:CCAC) is exploring a sale of its controlling stake in EBeauty Holdings Cayman Ltd. after a planned initial public offering in Hong Kong stalled due to market volatility, Bloomberg reported, citing people familiar with the matter. EBeauty is a provider of e-commerce services to China’s cosmetics industry.
Chinese food delivery giant Meituan will now allow its users to pay for movie tickets and hotels with the digital version of the yuan, China’s sovereign currency, as per a report by CNBC. The digital yuan, also known as e-CNY, is not a cryptocurrency like Bitcoin (CRYPTO: BTC).
Shares of Chinese companies, including electric vehicle maker Nio Inc. (NYSE:NIO), closed notably lower in U.S. trading on Thursday after the major averages in the U.S. ended lower in a volatile session.