Benzinga | Oct 25, 2021 01:03AM EDT

Alibaba, JD And Nio Rivals Xpeng, Li Auto Strike Gains But China's New COVID-19 Outbreak Puts Recovery At Risk

Shares of Alibaba Group Holding Limited (NYSE:BABA), JD.Com Inc. (NASDAQ:JD), Xpeng Inc. (NYSE:XPEV) and Li Auto Inc. (NASDAQ:LI) rose in Hong Kong on Monday, while Baidu Inc. (NASDAQ:BIDU) and Tencent Holdings Inc. (OTC:TCEHY) traded lower.

What's Moving Chinese e-commerce giant Alibaba's shares traded 0.6% higher at HKD 175.50 and e-commerce company JD.Com's shares have gained 0.3% to HKD 326.00 in Hong Kong, while technology company Baidu's shares have lost almost 2% to HKD 174.10.

See Also: How To Buy Xpeng Motors (XPEV) Stock

Electric vehicle maker Xpeng's shares have gained almost 1.5% to HKD 172.30 and peer Li Auto's shares traded 0.8% higher at HKD 124.60.

Tech conglomerate Tencent Holdings' shares are down 0.8% to HKD 505.50.

Shares of China Evergrande Group (OTC:EGRNY) have risen almost 0.7% to HKD 2.71.

The heavily indebted property developer said it plans to make its electric vehicle venture its primary business, even as it has resumed work on over 10 real estate projects, according to a report by Reuters.

Hong Kong's benchmark Hang Seng Index recovered after a weak start and was up 0.2% at the time of writing. The index closed 0.4% higher on Friday.

Why Is It Moving? The Hang Seng Index rose slightly on Monday as worries about the Evergrande debt crisis eased further. Nevertheless, investors remained cautious as they monitored a COVID-19 outbreak in mainland China that is expected to worsen in the coming days.

The spillover effect of debt default risks of Chinese real estate companies would be controllable, Reuters reported, citing state-run Xinhua News Agency.

Meanwhile, China plans to tax owners of residential, commercial properties and lands in selected regions as part of a five-year trial, the South China Morning Post reported, also citing Xinhua.

Shares of Chinese companies closed mostly lower in U.S. trading on Friday after the major averages in the U.S. ended on opposite sides of the unchanged line.

Alibaba's shares closed 0.2% higher, while Nio's shares ended lower by almost 2.7%.