Shares of U.S.-listed Chinese tech companies surged in Hong Kong on Wednesday, leading the benchmark Hang Seng Index notably higher.
What’s Moving: Shares of Alibaba Group Holding Limited,BaiduInc.,JD.Com Inc., Tencent Holdings Inc., Li Auto Inc. and Xpeng Inc., traded higher in a range of 3% to 9%.
The Hang Seng Index rebounded opened higher on Wednesday and was up almost 2.0% at the time of writing. The index closed little changed on Tuesday, ending a three-day winning streak.
Why Is It Moving? The Hang Seng Index rose after official data showed that China’s inflation rose slower than expected in December. The data raised hopes of more policy easing as China’s economy continues to struggle with property sector woes and repeated COVID-19 outbreaks.
China’s consumer price Index (CPI) grew 1.5% year-over-year in December, while the producer price index (PPI) rose 10.3% from a year earlier, as per areport by Reuters, citing the National Bureau of Statistics.
Tesla Inc.’s China sales rose in December and outperformed the industry in terms of year-over-year and sequential growth, it was reported on Tuesday. The Elon Musk-led company’s Chinese rivals —Nio Inc., XPeng and Li Auto — had also previously reported strong deliveries for December.
Shares of Chinese companies closed notably higher in U.S. trading on Monday after the major averages in the U.S. ended higher. Federal Reserve Chair Jerome Powell said the central bank would use all of its tools to prevent higher inflation from becoming entrenched.
Alibaba’s shares closed 3.0% higher, while Nio’s shares ended higher by 3.8%.