Hong Kong stocks slip as Chinese EV makers slump on margin squeeze, Nvidia hits tech bulls
Hong Kong stocks slip as Chinese EV makers slump on margin squeeze, Nvidia hits tech bulls
The Hang Seng Index slipped 0.4 per cent to 17,618.23 at 9.56am local time. The Hang Seng Tech Index tumbled 1.9 per cent while the Shanghai Composite Index retreated 0.4 per cent.
Li Auto sank 14 per cent to HK$70.05 after profit margins shrank in the second quarter while earnings failed to surpass market consensus amid a brutal price war, while peer Xpeng slid 8.2 per cent to HK$28.40. Market leader BYD lost 2.7 per cent to HK$220, after first-half profit missed the projections and its affiliate BYD Electronics plunged 14 per cent to HK$25.50.
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Chinese EV maker Xpeng unveils budget car models priced under US$17,000
Chinese EV maker Xpeng unveils budget car models priced under US$17,000
Risk appetite also suffered after Nvidia plunged 7 per cent in overnight New York trading, trimming its 160 per cent rally this year. The firm said sales in the third quarter may reach US$32.5 billion, compared with analysts’ projection for US$37.9 billion.
SMIC, China’s top chip maker, fell 0.6 per cent to HK$16.30 while Tencent declined 0.7 per cent to HK$371.60 and Hua Hong Semiconductor slipped 1.2 per cent to HK$16.66.
Chengdu Uestc Optical Communications jumped 136 per cent to 23.53 yuan on the first day of trading on the Beijing stock exchange, the day’s sole debutant.
Other major Asian markets weakened. Japan’s Nikkei 225 slipped 0.5 per cent, while South Korea’s Kospi retreated 0.7 per cent and Australia’s S&P/ASX 200 lost 0.6 per cent.
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