Tesla production reports spell carnage for Chinese EV stocks as tech majors Hang Seng hold it together
Hong Kong stocks opened mixed, although the benchmark Hang Seng Index was up more than 2% in morning trading as China cut some of its holdings. COVID restrictions earlier than expected. Shares of Alibaba, Meituan and Tencent gained more than 2% in morning trading.
However, EV stocks were down Nio falling over 9% and Xpeng losing over 7% in morning trading as demand concerns swept gained momentum following reports of Tesla Inc TSLA slashing production schedule and Nio lowering guidance. Li Auto stock also fell more than 6%.
Also read: How to invest in startups
Macro News: Profits for China's industrial companies fell in the first 11 months of the year as production slowed and ex-factory prices fell in the aftermath of Covid disruptions, Bloomberg reported. Revenue fell 3.6% in the first 11 months of 2022, according to the report.
China is set to release data on COVID-19 cases once a month when the disease is under Category B management, Reuters reported quoting a Center official Chinese disease control and prevention.
Company News: Tesla Inc plans to run a reduced production schedule at its Shanghai Giga plant in January.
Nio lowered its fourth quarter shipment guidance from 43,000-48,000 units to 38,500-39,500 units.
Top Gainers and Losers: WuXi Biologics (Cayman) Inc. and ENN Energy Holdings Limited were the top gainers among Hang Seng constituents, rising more than 5% each. Alibaba Health Information Technology Limited and Country Garden Services Holdings Company Limited were the only two losers, down 3.1% and 0.62%.
Global News: US futures traded in the green during Wednesday morning's Asian session. Dow Jones futures gained 0.1% while Nasdaq futures rose 0.17%. S&P 500 futures were trading up 0.13%.
Elsewhere in Asia-Pacific, the Australian ASX 200 was trading down 0.2%. Japan's Nikkei 225 traded down 0.58% while China's Shanghai Composite fell 0.1%. South Korea's Kospi lost 2.04%.
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Hong Kong stocks opened mixed, although the benchmark Hang Seng Index was up more than 2% in morning trading as China cut some of its holdings. COVID restrictions earlier than expected. Shares of Alibaba, Meituan and Tencent gained more than 2% in morning trading.
However, EV stocks were down Nio falling over 9% and Xpeng losing over 7% in morning trading as demand concerns swept gained momentum following reports of Tesla Inc TSLA slashing production schedule and Nio lowering guidance. Li Auto stock also fell more than 6%.
Also read: How to invest in startups
Macro News: Profits for China's industrial companies fell in the first 11 months of the year as production slowed and ex-factory prices fell in the aftermath of Covid disruptions, Bloomberg reported. Revenue fell 3.6% in the first 11 months of 2022, according to the report.
China is set to release data on COVID-19 cases once a month when the disease is under Category B management, Reuters reported quoting a Center official Chinese disease control and prevention.
Company News: Tesla Inc plans to run a reduced production schedule at its Shanghai Giga plant in January.
Nio lowered its fourth quarter shipment guidance from 43,000-48,000 units to 38,500-39,500 units.
Top Gainers and Losers: WuXi Biologics (Cayman) Inc. and ENN Energy Holdings Limited were the top gainers among Hang Seng constituents, rising more than 5% each. Alibaba Health Information Technology Limited and Country Garden Services Holdings Company Limited were the only two losers, down 3.1% and 0.62%.
Global News: US futures traded in the green during Wednesday morning's Asian session. Dow Jones futures gained 0.1% while Nasdaq futures rose 0.17%. S&P 500 futures were trading up 0.13%.
Elsewhere in Asia-Pacific, the Australian ASX 200 was trading down 0.2%. Japan's Nikkei 225 traded down 0.58% while China's Shanghai Composite fell 0.1%. South Korea's Kospi lost 2.04%.
Read next:
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