Shares of U.S.-listed Chinese companies were trading higher in Hong Kong on Monday morning, with tech giants like Alibaba Group Holding BABA, JD.com Inc JD, Baidu Inc BIDU, and Tencent Holdings TCEHY firmly in the green.
Among electric vehicle stocks, Li Auto Inc LI, Xpeng Inc XPEV, and Nio Inc NIO gained at least 4% in early trading.
Shares of these Chinese companies ended lower on Friday on U.S. bourses.
Global Markets Recap: At press time, the benchmark Hang Seng Index was up over 1%. Shanghai’s SSE Composite Index and Japan’s Nikkei 225 were also higher, while Australia’s ASX 200 shed 0.45%.
Macro Factors: The Chinese government has rolled back COVID-19 restrictions in the mainland capital of Beijing.
The city’s local administration said it would resume public transport service from Monday and open entertainment and restaurant facilities in most of its districts.
Europe’s biggest money manager, Amundi, sees a brighter side for the Chinese stock market as concerns about economic growth and earnings due to the COVID-19 lockdown are already baked into beaten-down stock prices, SCMP reported.
Company In News: Alibaba replaced Lazada Group CEO Chun Li with the head of its Thailand business, James Dong, signifying brewing competition in Southeast Asia. Its fintech arm Ant Group has appointed Hong Kong Exchanges and Clearing chairman Laura Cha as an independent director.
Warren Buffett-backed Chinese new energy vehicle maker BYD Co BYDDF outperformed Nio, Xpeng, and Li Auto in May as sales of its battery-powered vehicle more than doubled despite lockdown woes.
Nio is mulling building a factory in Hungary to produce battery swap stations and charging piles to support its business in the European market, according to a local Chinese media, Cailian.