Business
Hong Kong Stocks Rally: Meituan, Mengniu Soar while Li Auto, EV Market Stumbles Amid Sell-Off
Hong Kong shares rebound from a slump as Meituan and Mengniu surge, while Li Auto and other electric vehicle companies falter. The metropolitan's primary index bounced back after a prior dip in electric vehicle producers, thanks to a surge in Meituan and Mengniu Dairy.
On Thursday, the Hang Seng Index saw an increase of 0.5 per cent, reaching 17,786.32, recovering from a previous drop of roughly 1.1 per cent. The uptick that took place today means that the standard index's increase in August now stands at 2.6 per cent. The Tech Index also experienced a bounce-back, noting a 0.5 per cent rise, even as the Shanghai Composite Index fell by 0.5 per cent.
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Chinese electric vehicle manufacturer, Xpeng, has revealed affordable car models with a price tag below $17,000.
The city's primary index began the day with a significant decline due to a sell-off amongst electric vehicle producers. Li Auto experienced a 9.8 per cent decrease, dropping to HK$73.15, following a contraction in profit margins in the second quarter and a failure to exceed expected earnings during a harsh pricing battle. Similarly, Xpeng fell by 5 per cent to HK$29.40, and Nio decreased by 4 per cent to HK$30.35.
Without the backing of earnings or policy stimulus, the market will remain trapped in a stable trading trend, says Song Yiwei, an analyst at Bohai Securities.
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