The Hong Kong benchmark Hang Seng Index traded in the red on Monday morning, down 0.6% after data on industrial production and retail sales in China disappointed investors.
Industrial production rose 3.8%, slightly less than the 3.9% figure recorded in June. Retail sales rose 2.7% in July from the same period in 2021, below forecast growth of 5%, reported CNBC.
China’s central bank also unexpectedly cut a key interest rate for the first time since January, reported Bloomberg. The Chin People’s Bankcut the rate on its one-year policy advances by 10 basis points to 2.75% on Monday.
Tesla Inc. TSLA-rival Xpeng Motors’ shares fell more than 2% in morning trading.
|Ali Baba Holding Group ltd. BABA||-0.16%|
|JD.com Inc. J.D.||0.72%|
|Baidu Inc. BIDU||-0.88%|
|Tencent Holdings ltd. TCEHY||-0.46%|
|Nio Inc. NIO||0.49%|
|XPEng Inc XPEV||-2.05%|
|Li-Auto Inc. LI||-0.08%|
Macro News: The People’s Liberation Army said it expanded its air checks into previously inaccessible areas before the Taiwan crisis, the South China Morning Post reported citing PLA Daily. The most advanced in the Air Force D-20 fighter jets has been scrambled several times to check the entry of foreign planes into the East China Sea Air Defense Identification ZoneIt said.
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New bank loans in China plunged more than expected in July, to 679 billion yuan, as general credit growth slowed, reported Reuters. Businesses and consumers remain reluctant to take on more debt following new cases of COVID-19, worries about jobs and a worsening housing crisis.
Company News: Chinese manufacturer of electric vehicles Nio reduced the restricted list of locations for its mega NIO Day 2022 three-city event, CnEVPost reported.
Li-Auto is likely to launch a new SUV Li L8 soon, which could possibly replace its first model, Li Areported CnEVPost.
Global Markets: US indices gained on Friday with the Nasdaq, closing up 2.09%. The Dow Jones Industrial Average rose 1.27% while the S&P 500 gained 1.73%.
Elsewhere in Asia, Australia’s ASX 200 gained 0.45% in Monday morning trading. Japan’s Nikkei 225 gained more than 1% while China’s Shanghai Composite Index rose 0.24%. South Korean markets remained closed for a public holiday.