Alibaba Slips, China Growth Pace Slows — Nio, EV Peers Buck Trend

Benzinga2022-07-15

Shares of major U.S.-listed Chinese companies traded mixed in Hong Kong on Friday, with tech heavyweights like Alibaba Group HoldingsBaidu IncJD.com Inc, and Tencent Holdings being a major drag.

Bucking the weakness, electric vehicle stocks gained, with Nio Inc, and Li Auto Inc trading as much as 2%.

Shares of these Chinese companies ended mixed on U.S. bourses on Thursday.

Global Markets Recap: The benchmark Hang Seng Index traded 0.69% lower after paring early losses.

In the U.S., the Dow Jones Industrial Average ended 0.46% lower on Thursday as investors assessed the scope of expected Fed rate hikes and disappointing big bank earnings.

On Friday, Shanghai's SSE Composite Index gained 0.16%, Japan's Nikkei 225 was up 0.50%, while Singapore's SGX Nifty traded mutedly.

Macro Factors: Struggling to shake off the impact of COVID-19 curbs, the Chinese economy grew by a paltry 0.4% — below market expectations — in the second quarter from a year earlier.

However, retail sales recovered in June and rose 3.1% from a prior slump, beating analysts' expectations for no growth from the preceding year. The unemployment rate across China’s 31 largest cities fell from pre-pandemic highs to 5.8% in June.

China’s central bank refrained from lowering a key policy rate, holding its one-year medium-term lending facility loans unchanged.

Property and bank stocks also declined as the mainland-China housing market bottomed amid COVID woes.

Company In News: Painting hopes for peers like Nio, Xpeng, and Li Auto, Warren Buffett-backed automotive giant BYD Co Ltd said it expects to achieve a net profit attributable to shareholders of RMB 2.8 billion - 3.6 billion ($533 million) in the first half, up almost 138.59% - 206.76% from a year earlier.

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Comments

  • Jess261
    2022-07-17
    Jess261
    Okay
  • JCai
    2022-07-16
    JCai
    K
  • Looyusooi
    2022-07-15
    Looyusooi
    Ok 
  • Moonshot
    2022-07-15
    Moonshot
    This is just hot $ flowing into them thinking that China is immune to global inflation. When commodities and other imports start to go north, that's where their music will stop.
  • Feijoa8025
    2022-07-15
    Feijoa8025
    Stocks down, time to buy!
  • DarkFate
    2022-07-15
    DarkFate
    Like 
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