Hong Kong shares plunged on Wednesday, taking cues from a heavy sell-off on Wall Street triggered by higher-than-expected U.S. inflation for August. Shares of Alibaba, Baidu, and JD.com fell over 3%, with the benchmark Hang Seng Index losing over 2.3%. A report of the United States considering sanctions against China to ward off any potential attack on Taiwan further soured market sentiment.
| Stock | Movement |
|---|---|
| Alibaba Group Holding Ltd. BABA | -3.56% |
| JD.com Inc JD | -3.26% |
| Baidu Inc BIDU | -4.48% |
| Tencent Holdings Ltd. TCEHY | -1.31% |
| Meituan MPNGF | -1.63% |
| Nio Inc NIO | 1.61% |
| XPeng Inc XPEV | -1.01% |
| Li Auto Inc LI | 1.74% |
Despite the sell-off, shares of EV makers Nio and Li Auto held up with gains of over 1%.
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Macro News: Chinese Premier Li Keqiang has called for more policies to boost consumption in the economy as the latest data indicate a further slump in travel and spending over a three-day public holiday amid COVID-19 controls, reported Bloomberg.
The United States is looking at options for a sanctions package against China to prevent it from invading Taiwan, with the European Union coming under diplomatic pressure from Taipei to do the same, Reuters reported, citing sources.
Company News: Starbucks Corporation SBUX has said it is planning to have about 9,000 stores in China by 2025, which is a 56% rise from the present count, reported Reuters.
Tencent Holdings received approval for a new game for the first time since Chinese authorities froze all licensing in 2021, according to media reports.
Top Gainers and Losers: Techtronic Industries Company Limited and WuXi Biologics (Cayman) Inc. are the top losers among Hang Seng’s top 30 constituents, shedding over 6% and 4%, respectively. CNOOC Limited is the only…
