Alibaba Falls, Nio Rises: Hang Seng Trades In Deep Red, Taking Cues From Pessimistic Wall Street

Hong Kong stocks opened mixed on Thursday morning, taking cues from Wall Street where major indices closed in the red on Wednesday as investors and traders lost optimism regarding any possible year-end rebound and braced themselves for the new year. The benchmark Hang Seng lost over 1% in morning trade.

Shares of Alibaba lost over 2% in morning trade. JD.com and Baidu shares lost over 5% and 3%, respectively. Nio was trading higher by 0.44%.

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Macro News: Electric vehicle exports from China more than doubled in November, creating a monthly record, mostly driven by European carmakers that shifted the production to the country, reported Bloomberg.

The U.S. will require travelers coming from China to test negative for COVID-19 prior to entering the country, reported the South China Morning Post, citing federal health officials.

Company News: Prominent New York-listed Chinese tech companies like Pinduoduo Inc (NASDAQ: PDD) are canceling plans to also list their shares in Hong Kong, indicating they no longer feel the need to hedge against potential regulatory conflicts between the U.S. and China, reported The Information.

Tesla Inc (NASDAQ: TSLA) has stated most employees at its Shanghai plant will take a vacation break at the end of next month, reported CnEVPost, adding that it’s not an established practice to halt operations for an extended period of time during the Chinese New Year.

Top Gainers and Losers: JD.com and Alibaba Health Information Technology Limited are the top losers among Hang Seng constituents, having shed over 5% each. WuXi Biologics (Cayman) Inc. is the only gainer, having risen over 2%.

Global News: U.S. futures traded mixed on Thursday morning Asia session. The Dow Jones futures lost 0.07% while the Nasdaq futures rose 0.18%. The S&P 500 futures were trading higher by 0.04%.

Elsewhere in Asia Pacific, Australia’s ASX 200 was trading lower by 1.2%. Japan’s Nikkei 225 traded 1.42% lower while China’s Shanghai Composite index fell 0.38%. South Korea’s Kospi lost 1.36%.

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