The Hong Kong benchmark Hang Seng Index opened in the red on Monday after a weaker close on Wall Street on Friday, which was dominated by a slump in social media stocks. The Hang Seng fell 0.6% in opening trade ahead of the crucial United States Federal Reserve meeting later this week which could potentially see a rate hike of 75 basis points.
EVs dive: Nio Inc. NIO led the losers, with the stock down more than 7% at the open. Tesla Inc. TSLA rival XPfra Inc XPEV fell by more than 4%, while Li-Auto Inc. LI was down nearly 4.6% at press time.
Technology loses its luster: Shares of Ali Baba Holding Group ltd. BABA lost more than 2% in trade opening and Baidu Inc. BIDU fell 1.43% on Monday morning. Tencent Holdings ltd. TCEHY shares fell 1.2%, while the buying platform Meituan MPNGF lost 0.52%.
e-commerce player JD.com Inc. J.D. lost 1.3%.
Also read: Apple, Meta and Pfizer among top companies reporting in coming week as earnings accelerate
Company News: Nio is expected to enter Germany, the Netherlands, Denmark and Sweden with its flagship ET7 sedan with its battery swap stations and domestic hiring, reports VE quoting the German Bank analyst Edison Yu.
China plans to categorize Chinese companies listed in the United States into groups based on data sensitivity to prevent U.S. regulators from delisting them, the Financial Times reported. About 260 Chinese enterprises including Alibaba, Yum China Holdings Inc. YUMC and Weibo Company BM could be delisted from the New York Stock Exchanges if they failed to meet the requirements.
Macro News: Hong Kong banks are set to see their first key rate hike in four years with the Fed’s looming rate hike on Thursday to stave off 40-year high inflation, the South China Morning Post reported, citing analysts.
China clarified that Xi Jinping received a local Covid hit, in a bid to clear up security concerns, reported The Guardian. Zeng Yixin, Deputy Head of the National Health Commissionsaid domestically manufactured vaccines were used to vaccinate ‘state and party leaders’ – a category of high-ranking officials believed to include President Xi Jinping and First Li Keqiang.
Global Markets: US markets ended in the red on Friday, led by a slump in social media stocks, with the Nasdaq index down 1.87%. The Dow Jones Industrial Average closed down 0.43%, while the S&P 500 lost 0.93%.
Shares of Snap inc. INSTANTANEOUS plunged 39% on disappointing second-quarter results.
Elsewhere in Asia, Japan Nikki 225 traded lower at 0.64% while the South Korean Kospi slightly increased by 0.03%. China Shanghai Composite traded flat, while Australia ASX 200 was up 0.07% in opening trade.