Chinese stocks subdued, Tencent, JD fall

107
2
Chinese stocks subdued, Tencent, JD fall

The shares of U.S. listed Chinese firms in Hong Kong were subdued on Tuesday morning, with major tech names like Tencent Holdings TCEHY, Baidu Inc BIDU and JD.com Inc JD coming under pressure.

NIO Inc NIO and Xpeng Inc XPEV fell as much as 8% and 9% among electric vehicle makers, while Li Auto Inc LI was down about 2.2%.

Shares of these companies ended up mainly lower in the U.S. markets on Monday.

The Hang Seng index fell 1.39% at press time, as investors braced for weaker earnings from tech heavyweights.

Australia's ASX 200 was trading on a muted note, while Shanghai's SSE Composite Index lost 0.79% and Japan's Nikkei 225 was down 0.51%.

UBS Investment Bank Research's chief China economist Dr. Tao Wang expects a significant rebound in Q 3 and Q 4, assuming the government will refine COVID 19 restrictions and reduce disruptions to transport and supply chain. In Tokyo, U.S. President Joe Biden said in a news conference with Japanese Prime Minister Fumio Kishida he was considering reducing tariffs on Chinese goods.

Companies In News: JD kicked off its annual 618 Grand Promotion, one of China's largest mid-year shopping festivals. The company said that the promotion would offer preferential benefits for U.S. merchants that were launched through the company's partnership with Shopify Inc. SHOP.

Baidu said on Monday that Beijing authorities had issued a new batch of driverless licenses after they agreed to allow the company to provide driverless ride-hailing services.

Tencent co-founder Pony Ma sparked a discussion about China's economic woes after he shared an opinion piece on the economic costs of China's strict COVID 19 curbs.

Xpeng reported its unaudited financial results on Monday. Revenue went up by 152.6% year-over-year to RMB 7.45 billion and $1.18 billion, beating estimates.

NYSE VC and Chief Commercial Officer John Tuttle expects the number of Chinese companies listed in the US to remain the same or grow as a result of the delisting threat.