Alibaba and Nio drop as Hang Seng Index starts weak in 2023

Alibaba and Nio drop as Hang Seng Index starts weak in 2023

Hong Kong stocks opened mixed on the first trading day of 2023 and the Hang Seng Index lost 0.36% in morning trade. The market seems to be digesting the fact that factory activity in China slowed at a faster pace in December, as a result of the increase in Covid-19 infections.

Action Motion
Alibaba Group Holding Ltd. (NYSE:BABA) -1.1%
JD.com Inc (NASDAQ:JD) -2.45%
Baidu Inc (NASDAQ:BIDU) -0.72%
Tencent Holdings Ltd. (OTC:TCEHY) -0.36%
Meituan (OTC:MPNGF) -3.66%
Nio Inc (NYSE:NIO) -0.7%
XPeng Inc (NYSE:XPEV ) 2.09%
Li Auto Inc (NASDAQ: LI) 5.14%

Alibaba and Nio lost about 1%, and Meituan shares were down more than 2% at the opening of trading. The shares of Xpeng and Li Auto rose more than 2% and 5%, respectively.

Macronews

China’s factory activity slowed at a faster pace in December as rising Covid-19 infections disrupted production and hit demand, Reuters has reported. China’s Manufacturing Purchasing Managers’ Index (PMI) fell to 49 points in December from November’s reading of 49.4.

European Union government health officials will discuss a coordinated response to rising Covid-19 infections in China on Wednesday, Reuters reported, citing the Swedish EU presidency.

News about companies

The head of Tesla Inc (NASDAQ:TSLA) in China, Tom Zhu, has reportedly assumed sales, service and delivery responsibilities in North America.

BYD (OTC:BYDDF) (OTC:BYDDY), which is backed by Warren Buffett, has sold 235,197 new energy vehicles (NEVs) in December, marking a new all-time high, CnEVPost has reported.

The most benefited and most harmed names

Meituan and Country Garden Services Holdings Company Limited are the biggest losers in the Hang Seng Index, having lost more than 4% and 3% respectively. WuXi Biologics (Cayman) Inc. and CSPC Pharmaceutical Group Limited were the main winners, up 1.5% and 0.12% respectively.

global news
US futures were trading in the red in the Asian session on Tuesday morning. Dow Jones futures are down 0.17%, while Nasdaq futures are down 0.39%. S&P 500 futures were trading 0.25% lower.

On the other hand, Australia’s ASX 200 was trading 1.8% lower. Japan’s Nikkei 225 remained closed for a holiday, while China’s Shanghai Composite Index fell 0.31%. The South Korean Kospi fell 1.53%.

Samuel Edwards
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