What’s Moving
Chinese e-commerce giant Alibaba’s shares traded 0.2 percent higher at HKD 157.60 and technology company Baidu’s shares have risen 0.8 percent to HKD 157.20 in Hong Kong, while e-commerce company JD.Com’s shares have lost 2.2 percent to HKD 299.00.Tencent Holdings’ shares are down 0.3 percent to HKD 462.40. The tech conglomerate is scheduled to report its third-quarter earnings results on Wednesday.
Electric vehicle maker Xpeng’s shares have gained almost 2 percent to HKD 182.60 and peer Li Auto’s shares have advanced 1.7 percent to HKD 122.20.
Chinese EV startup Nio Inc. (NIO) is slated to report its financial results for the third quarter later today.
Why Is It Moving?
The Hang Seng Index is trading flat as investors turned cautious ahead of earnings reports from index heavyweights such as Tencent, Xiaomi and Meituan over the next few days.The earnings results are expected to provide a glimpse of how the tech companies have fared amid Beijing’s regulatory crackdown.
Worries about China’s troubled property sector also remained in focus. Two holders of offshore bonds issued by a unit of heavily indebted property developer China Evergrande Group (EGRNY) have not yet received payment for coupons that were officially due Saturday, Bloomberg reported Monday.
The stock market opened higher after the South China Morning Post reported that Hong Kong will fully reopen its land border with China for quarantine-free travel by June next year at the latest.
China state council’s think tank held a meeting with property developers and banks in the city of Shenzhen on Monday, as per a report by Reuters. Property developers China Vanke Group and Kaisa Group as well as banks such as China Citic Bank and Ping An Bank participated in the meeting.
Shares of Chinese companies closed mostly higher in U.S. trading on Monday after the major averages in the U.S. closed at new record highs.
Alibaba’s shares closed almost 1.23 percent lower, while Nio’s shares also ended lower by 6.11 percent.
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