Alibaba, JD And Tencent Lead Hang Seng Lower On Earnings, Regulatory Worries

Shares of $Alibaba(BABA.US)$ , $Baidu(BIDU.US)$ , $JD.com(JD.US)$ and $Tencent(TCEHY.US)$ fell in Hong Kong on Tuesday, while $Li Auto(LI.US)$ and $XPeng(XPEV.US)$ traded higher.

Alibaba’s shares have lost almost 3.1% to HKD 132.90 in Hong Kong, while tech conglomerate Tencent’s shares have fallen 2.7% to HKD 481.00 on Tuesday. Technology company Baidu’s shares traded 2.2% lower at HKD 144.80.Meanwhile, electric vehicle maker Li Auto’s shares have risen 2.2% to HKD 122.50 and Xpeng’s shares have advanced 2.0% to HKD 188.90.Xpeng will report its third-quarter financial results later today.

Why Is It Moving? The Hang Seng Index extended losses to a fifth day amid worries about weak earnings results from Chinese tech giants following Beijing’s regulatory crackdown on Big Tech.

China’s market regulator has proposed a long list of responsibilities and said it expects more from “super large platforms” like Alibaba, Tencent and Meituan in the areas of data protection, treatment of workers, and fair competition, it was reported, citing Reuters.

Shares of Chinese companies closed mixed in U.S. trading on Monday. The major averages in the U.S. closed on opposite sides of the unchanged line after President Joe Biden nominated Jerome Powell for a second term as Federal Reserve Chair.