Benzinga | Nov 4, 2021 02:17AM EDT

Alibaba, JD And Nio Rivals Xpeng, Li Auto, BYD Surge In Hong Kong As Market Brushes Off Fed Tapering

Alibaba Group Holding Limited (NYSE:BABA) traded in the green in the Hong Kong markets Thursday alongside BYD Company Limited (OTC:BYDDF), Tencent Holdings Limited (OTC:TCEHY), and Nio Inc. (NYSE:NIO) rivals Xpeng Inc (NYSE:XPEV) and Li Auto Inc (NYSE:LI).

What Happened: Jack Ma-led Alibaba's shares rose 2.24% higher at HKD 164.20 in Hong Kong, while Warren Buffett-backed automaker BYD's shares rose almost 6.5% to HKD 311.80.

Shares of automakers Xpeng and Li Auto rose 1.24% and 6.24% to HKD 122.20 and HKD 192.30 respectively.

Tencent shares were up almost 1.6% to HKD 476.60 at press time.

The Hong Kong market reacted positively to the U.S. Federal Reserve's tapering announcement on Wednesday.

The Hang Seng Index was up 0.27% at 25,092.23 at press time. The index opened higher at 25,141.10 on Wednesday after ending the previous trading session at 25,024.75.

See Also: How To Buy Alibaba (BABA) Stock

Why It Matters: On Wednesday, Hong Kong Chief Executive Carrie Lam Cheng Yuet-ngor said business travel would get priority if the border between mainland China and Hong Kong reopens, reported the South China Morning Post.

Restricted travel between the mainland and Hong Kong amid the rising number of coronavirus cases in China weighed on investor sentiment earlier in the week.

On Thursday, Nikkei reporter Nina Xiang wrote that the large amounts of money pledged by Alibaba and Tencent to Chinese President Xi Jinping's "common prosperity" drive will further entrench their existing dominant positions through strategic "philanthrocapitalism."

An example of such philanthrocapitalism is Alibaba's goal to create agricultural product aggregation centers that tap into its existing e-commerce platforms Taobao and Tmall, as per Nikkei.

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