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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 XPEV leading gains, while tech majors such as Alibaba Group Holding Ltd BABA and JD.com Inc BABA rose as much as 4%.
Chinese web search giant Baidu Inc BIDU and tech conglomerate Tencent Holdings Ltd TCEHY also strengthened, while Nio Inc NIO and EV peer Li Auto 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.
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Image and article originally from www.benzinga.com. Read the original article here.