Alibaba Surges 6% On Primary Hong Kong Listing Plan, Hang Seng Sees Trend-Reversal

ZINGER KEY POINTS

• Hong Kong's Hang Seng Index rises 1.56%
• Alibaba shoots up 6% on Hong Kong primary listing plan
• XPeng-backed Aero HT opens trial production factory prior to 2024 roll-out: report

Hong Kong’s benchmark Hang Seng Index opened in the green on Tuesday, flipping the trend from Monday, as better-than-expected economic growth data from South Korea offset mixed cues from Wall Street overnight.

Tech Gathers Steam: The Hang Seng rose 1.56%, as shares of Alibaba shot up 6% following news that it will be applying for a primary stock listing in Hong Kong. This move would allow the e-commerce giant to seek inclusion in the Stock Connect link with the Shanghai and Shenzhen exchanges, Bloomberg reported — meaning, Chinese investors would finally have an opportunity to directly invest in the stock.

Company News: XPeng-backed Aero HT opens its trial production factory prior to its roll-out in 2024, reported EV.

Global Markets: U.S. markets ended mixed on Monday ahead of a crucial week as investors brace for possible U.S. rate hikes and more earnings from big tech firms. The Nasdaq index fell 0.43%, while the Dow Jones Industrial Average closed 0.28% higher. The S&P 500 rose 0.13%.

On Tuesday morning, Japan’s Nikkei 225 traded 0.29% lower. South Korea's Kospi rose 0.26% as data showed gross domestic product beat estimates, expanding 0.7% in three months through June.

China’s Shanghai Composite and Australia’s ASX 200 traded flat in Tuesday’s opening trade.