U.S.-listed Chinese EV makers Nio Inc LI, XPeng Inc XPEV and Li Auto LI plunged in Hong Kong on Friday after the stocks of these Tesla Inc TSLA rivals saw their previous gains evaporate in the U.S. overnight.
The Dow Jones Industrial Average fell to its worst day since 2020 and the Nasdaq Golden Dragon China Index fell nearly 8%, despite rising concerns about a slowing economy and interest rate hike by the Fed.
The Macro Factors: Hong Kong's benchmark Hang Seng Index fell 3.27%, led by a major slump in index heavyweights due to fears that Beijing's zero-COVID policies will disrupt the economy and the administration's lack of concrete measures to support the sector.
Chinese leaders warned against Xi Jinping's strategy to stamp out the coronavirus despite the sharp contraction in the country's economy as businesses came to a halt, Bloomberg reported.
The sell-off in Hong Kong resulted in a reversal of fortunes after Hang Seng posted large gains on Thursday.
Australia's ASX 200 shed 2.24%, while the SGXNifty in Singapore was down 2.14%, while the Shanghai Composite fell 1.58%.
The US Securities and Exchange Commission added a list of Chinese companies that are on the verge of delisting in the U.S. due to the US-China audit stand-off.
NIO has announced a proposed secondary listing of its Class A ordinary shares on the Singapore Exchange amid the uncertain environment in the U.S. for the Chinese giants.