Hong Kong’s benchmark index, the Hang Seng Index, tumbled over 1.9% at the open, hitting 2011 lows after the US federal reserve raised interest rates by 0.75% and hinted that they could rise as high as 4.6% next year.
That weighed on shares in US-listed Chinese electric vehicle makers, whose business prospects are heavily dependent on interest rates.
| share | movement |
|---|---|
| Alibaba group holding company GmbH. BABA | -3.13% |
| JD.com inc JD | -3.3% |
| Baidu Inc BIDU | -3.55% |
| Tencent Holdings GmbH. TCEHY | -1.3% |
| meituan MPNGF | -3.34% |
| Nio Inc NEVER | -8.86% |
| XPeng Inc XPEV | -13.86% |
| Li car inc LI | -6.26% |
XPeng shares fell 13% on the open, while Nio lost over 8%. Li Auto shares lost over 6%. Higher interest rates mean that buying a car would pull more money out of a consumer’s pocket in terms of monthly payments.
The Bank of Japan will announce its monetary policy decision today.
Goldman Sachs Group Inc. GS has sharply trimmed its 2023 economic growth forecast for China, projecting gross domestic product to increase by 4.5% in 2023, down from the earlier forecast of 5.3%, the company reported Bloomberg citing a note from Goldman’s economists.
Taiwan’s government has said it will never allow China to “meddle” in its future, after a Chinese government spokesman said Beijing was ready to make best efforts to seek peaceful “reunification” with the island, the report reported Reuters.
corporate news: China’s leading online travel service provider Trip.com Group Limited TCOM reported a profit of RMB43 million (US$6 million) in the second quarter compared to a net loss of RMB659 million (US$93.5 million) a year earlier
China Evergrande Group EGRNF said Wednesday it was considering transferring some assets to its real estate unit to help pay off some of the unit’s debt payments, reports Reuters.
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