Hong Kong stocks on Monday rebounded from a six-month low following a late-session rally in U.S. stocks.
What Happened: Shares of U.S.-listed Chinese firms traded higher in Hong Kong on Tuesday morning, with electric vehicle maker Xpeng Inc (NYSE:XPEV) leading gains, while tech majors such as Alibaba Group Holding Ltd (NYSE:BABA) and JD.com Inc (NASDAQ:BABA) rose as much as 4%.
Chinese web search giant Baidu Inc (NASDAQ:BIDU) and tech conglomerate Tencent Holdings Ltd (OTC:TCEHY) also strengthened, while Nio Inc (NYSE:NIO) and EV peer Li Auto (NASDAQ:LI).
Shares of these Chinese companies ended higher in U.S. markets on Monday.
| Stocks | Movement (+/-) |
|---|---|
| Alibaba | 3.88% |
| JD.com | 3.86% |
| Baidu | 2.81% |
| Tencent | 2.15% |
| Nio | 6.18% |
| Xpeng | 10.08% |
Global Markets Recap: At press time, Hong Kong’s benchmark Hang Seng Index was up about 1.33% following positive cues from the global markets. Elsewhere, Australia’s ASX 200 gained over 1.17%, Japan’s Nikkei 225 was up 0.42%, and Shanghai’s SSE Composite Index rose 0.46%.
Macro Factors: Investor confidence was boosted by the state planner National Development and Reform Commission’s announcement that the country will accelerate the use of financial tools worth 300 billion yuan (US$42.8 billion) and speed up project construction to shore up the economy.
The People’s Bank of China also retained its one-year and five-year loan prime rates (LPR), in line with analysts’ predictions. The one-year loan prime rate stood at 3.65%, while the five-year rate stayed at 4.30%.
Company News: Mizuho analyst James Lee reiterated a Buy and $90 price target on JD.com. He highlighted trends improved gradually from July to September, increasing confidence for revenue growth.
Xpeng Inc launched a pilot program of the City Navigation Guided Pilot (NGP). This achievement made it the first Chinese company to launch high-level Advanced Driver Assistance System (ADAS) functions for urban driving.
Bank of America Securities and the analyst reiterated a ‘buy’ rating for Nio stock with a $30 price target, owing to the carmaker’s strong model pipelines and improving GPM, Investing.com reported.
