Hello Group Inc. (MOMO), the Chinese social and entertainment giant, reported a smaller-than-expected revenue decline in its fiscal Q3 2024, exceeding analyst estimates for both revenue and earnings per share. Despite a year-over-year decrease in active users and paying subscribers, the company’s stock price surged following the positive earnings report. The company’s outlook remains cautious, but its focus on international expansion offers a potential growth driver.
Li Auto, a major Chinese electric vehicle (EV) maker, announced significant changes to its smart driving team, leading to a slight premarket stock increase. The restructuring, including the promotion of Xia Zhongpu to head of end-to-end technology delivery, signals a strong commitment to technological advancement in the competitive EV market. This follows recent positive trends for US-listed Chinese stocks and strong Q4 financial projections from Li Auto.
US-listed Chinese stocks are experiencing a significant rally following reports of increased fiscal stimulus and improved industrial profits in China. This positive economic news has boosted investor confidence, leading to substantial gains for companies like Alibaba, JD.com, Baidu, NIO, Li Auto, and XPeng.
NetEase, Inc. (NTES) reported a slight revenue decline in its fiscal third quarter, but earnings beat analyst expectations. The company’s gaming segment saw a dip, while Youdao and Cloud Music showed growth. NetEase also launched new titles and saw strong performance from existing games like Naraka: Bladepoint and Racing Master. Despite positive financial results, the company faces challenges with regulatory scrutiny and a slumping U.S.-listed Chinese stock market.
Chinese electric vehicle (EV) stocks, including Nio, XPeng, and Li Auto, experienced gains during the U.S. pre-market session on Tuesday. The rise can be attributed to a confluence of factors, including upcoming financial announcements, positive analyst ratings, and government initiatives to support the EV sector.
US stock futures are pointing to a lower open on Wednesday, with the Dow futures down around 50 points. Several Chinese stocks listed in the US are experiencing pre-market losses, following disappointing stimulus expectations from Chinese planning officials. Delek Logistics Partners, which priced a public offering at $39 per unit, also saw its shares decline significantly.
Alibaba Group Holding Ltd. (BABA) shares took a hit on Tuesday, mirroring the broader decline in U.S.-listed Chinese stocks. This drop followed China’s National Development and Reform Commission’s (NDRC) announcement of underwhelming stimulus measures, which failed to meet investor expectations for bold economic boosts.
Shares of NIO Inc. (NIO) dropped significantly on Tuesday, mirroring a broader decline in U.S.-listed Chinese stocks. This downturn follows news that Chinese officials did not meet investor expectations for substantial economic stimulus measures, leading to a sell-off in the Chinese market.
Baidu Inc. (BIDU) shares tumbled over 6% on Tuesday, mirroring a broader selloff in U.S.-listed Chinese stocks after China’s planning officials failed to meet investor expectations for aggressive economic stimulus. The lack of a substantial fiscal boost fueled concerns about a potential slowdown in China’s economy, weighing heavily on Baidu and other tech companies reliant on the country’s growth.
Chinese markets experienced a sharp selloff overnight, with the Hang Seng Index in Hong Kong plummeting more than 9% due to disappointment over the lack of aggressive fiscal stimulus announcements from Beijing. Investors had hoped for bold measures to support the economy, but the only concrete plans announced were a front-loaded 100 billion yuan ($14.1 billion) budget from 2025 and another 100 billion yuan for construction projects. The selloff extended to offshore Chinese equities and U.S.-listed Chinese stocks.
