Alibaba, JD, Tencent And Nio Peers Xpeng, Li Auto Continue To Plunge In Hong Kong Amid Evergrande Woes

Alibaba, JD, Tencent And Nio Peers Xpeng, Li Auto Continue To Plunge In Hong Kong Amid Evergrande Woes

Some of the biggest technology companies continue to see their shares plunge in Hong Kong amid the Evergrande crisis on Tuesday.

What Happened: Alibaba Group Holding Ltd. (BABA) shares are trading 2.1% lower at HKD 148.30 at press time in Hong Kong.

JD.Com Inc. (JD) stock is down 1.63% at the time of writing, trading at HKD 289.80. Tencent Holdings Ltd. (TCEHY) shares are trading about 1% lower at HKD 449.80.

Baidu Inc. (BIDU) shares are down 3.9% at HKD 150.30 at press time.

China Evergrande Group (EGRNF), whose financial woes have sparked a slump in markets globally, is down 3.07% at press time, trading at HKD 2.21.

Among electric vehicle stocks, Nio Inc. (NIO) peers Xpeng Inc. (XPEV) and Li Auto Inc. (LI) have plummeted 4.45% and 7.4% to HKD 141.70 and HKD 102.80, respectively.

Automaker BYD Company (BYDDF),(BYDDY) is down 1.6% to HKD 239.80 at the time of writing.

Hang Seng Index, the benchmark stock market index for Hong Kong, is down 0.88% to 23,886.25 at press time.

Why It Matters: The Hong Kong stock market has been seeing high volatility in recent months with uncertainty over the regulatory situation in China, where many of the biggest companies listed in Hong Kong operate.

The latest plunge comes amid the Evergrande crisis, with concerns over whether the highly indebted property dealer would be able to resolve its financial woes.

The plunge in Hong Kong on Monday seemed to cause a ripple effect across global markets, taking a toll both on U.S. equities and cryptocurrencies.

The S&P 500 closed 1.7% lower on Monday and Nasdaq Composite dropped lower by 2.19%. Large-cap tech stocks saw a significant drop, with Apple Inc (AAPL) closing 2.1% lower, Inc (AMZN) closing 3.08% lower and Tesla Inc (TSLA) closing 3.86% lower.

Major cryptocurrencies have suffered a similar fate, with Bitcoin (CRYPTO: BTC) trading 6.3% lower at $42,797 at press time, Ethereum (CRYPTO: ETH) down 6.29% at $3,006.37, and retail-favorite Dogecoin (CRYPTO: DOGE) trading about 5.6% lower at $0.2099.

Disclaimer: © 2021 Benzinga does not provide investment advice. All rights reserved.

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William K. 2 years ago Member's comment

Perhaps the China Government should make some "recommendations" about debt levels. It does seem like such a huge amount of debt was asking for a disaster, rather than "just being a bold move." Some moves do clearly lead towards disasters, and just seeing an organization making them would prompt me to end my exposure quickly. But even that might be too late.