Hong Kong stocks hit 5-month low as Alibaba slides while Geely and BYD pace losses in EV makers on China slowdown

XPeng sinks, dragging other EV peers, after reporting a wider quarterly loss as vehicle delivery suffers under supply-chain disruptions

Slower car deliveries show another facet of economic slowdown in mainland China, with a looming power crisis set to roil production again

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A Chinese investor in front of an electronic board showing stock prices at a securities brokerage house in Beijing. Photo: EPA-EFE

Published: 10:32am, 24 Aug 2022Updated: 4:35pm, 24 Aug 2022

Hong Kong stocks slumped to a five-month low amid losses among Chinese carmakers as vehicle deliveries suffered from supply-chain disruptions and weak consumer confidence, undermining corporate earnings outlook.

The Hang Seng Index lost 1.2 per cent to 19,268.74 at the close of Wednesday trading, the lowest since March 15. The Tech Index lost 2.8 per cent, while the Shanghai Composite Index slipped 1.9 per cent.

Geely Automobile retreated 4.5 per cent to HK$15.40 while BYD lost 5.2 per cent to HK$258.80 and XPeng tumbled 12 per cent to HK$72.85. Among tech stocks, Alibaba Group Holding retreated 2.4 per cent to HK$86.25 and Meituan weakened 2.7 per cent to HK$164.10.

XPeng tumbled after the electric-car maker reported a wider underlying second quarter loss, infecting losses in other EV stocks. Li Auto tumbled 5.4 per cent to HK$113.30 while Nio slumped 5.1 per cent to HK$141.

“It is still early for China’s economy to show signs of strong recovery” following policy measures to counter the pandemic, said Alec Jin, investment director of Asian equities at abrdn in Hong Kong. “So, we expect the market to remain range-bound over the short term.”