China Stock Market Rally Loses Steam, Xpeng Reports Narrower Quarterly Loss

Li Chen
22 May, 2024
Hong Kong

Stocks in Shanghai and Hong Kong rebounded in early afternoon trading, and investors await earnings from leading tech companies. 

Market indexes in Shanghai and Hong Kong struggled to stay above flatline, and electric vehicle makers rebounded a day after Li Auto reported sharply lower earnings. 

EV makers advanced after Xpeng reported better-than-expected earnings. 

Lenovo and Xiaomi were in focus, and both companies are set to report earnings later in the session. 

The market rally appears to have run its course as investors looked for more signs of improving earnings. 

 

China Stock Movers 

The CSI 300 index increased 0.4% to 3,690.28, and the Hang Seng index advanced 0.2% to 19,253.54. 

Xpeng jumped 13.5% to HK$34.75 after the electric vehicle maker reported stronger-than-expected quarterly earnings. 

Net loss in the first quarter narrowed to 1.37 billion yuan from 2.34 billion yuan, after revenue surged 62% to 6.55 billion yuan from a year ago, respectively. 

The company sold 21,821 vehicles in the quarter, an increase of 20% from a year ago, and vehicle margin improved to 5.5% from a loss of 2.5% a year ago. 

Lenovo Group jumped 12.5% to HK$11.50 ahead of the personal computer maker's earnings later in the day. 

Xiaomi advanced 0.2% to HK$19.34, ahead of the smartphone maker's earnings later in the day. 

In Wednesday's trading, banks advanced and tech stocks traded down. 

ICBC, Bank of China, Agriculture Bank of China, and China Construction Bank gained between 0.2% and 0.7% in Wednesday's trading. 

Li Auto and Geely Automobile advanced about 1.8% after falling sharply in the previous session. 

China Vanke rose 2.8%, Longfor Group declined 1.8%, and China Resources Land added 0.1%.