Shares of U.S.-listed Chinese firms traded higher in Hong Kong on Tuesday morning, with electric vehicle makers leading gains, while tech majors such as Alibaba Group Holding Ltd BABA and JD.com Inc JD rose as much as 4%.
Web search giant Baidu Inc BIDU and tech conglomerate Tencent Holdings Ltd TCEHY also strengthened, while Nio Inc NIO shot up nearly 9% and was atop the table along with peers Li Auto Inc LI, and Xpeng Inc XPEV.
Shares of these Chinese companies ended mixed in U.S. markets on Monday.
Global Markets Recap: At press time, Hong Kong’s benchmark Hang Seng Index soared about 2.15% following positive cues from the global markets. Elsewhere, Australia’s ASX 200 gained over 0.21%, Japan’s Nikkei 225 was up 0.20%, while Shanghai’s SSE Composite Index ticked up 0.18%.
Macro Factors: Investor confidence was boosted by the announcement of a phased economic reopening almost after a two-month lockdown as traders re-evaluated the growth prospects for a sluggish economy.
Company In News: Two months after calling the sector “uninvestable,” JPMorgan lifted the rating on at least 15 Chinese tech companies, including Tencent and Alibaba. It also upgraded JD.com to neutral and raised its price target to $58.
Bank of America Securities upgraded its rating on Nio stock to “buy” from “neutral”, and bumped up its price target to $26 from $25 per share.
Hedge fund Tiger Global more than doubled its positions in Chinese EV makers Xpeng and Li Auto.