Nio opened down 8.11 percent, Xpeng opened down 5.24 percent and Li Auto opened down 14.98 percent.
A broad sell-off in Hong Kong’s stock market continued on Tuesday, with stocks of electric vehicle companies opening with sharp declines.
Hong Kong’s Hang Seng Index opened down 3 percent on Tuesday, while the Hang Seng Tech Index fell 5.54 percent.
Shares of leading EV makers continued to plunge, with Nio (NYSE: NIO, HKG: 9866) opening down 8.11 percent, Xpeng Motors (NYSE: XPEV, HKG: 9868) opening down 5.24 percent and Li Auto (NASDAQ: LI, HKG: 2015) opening down 14.98 percent.
On Monday, Nio was down 14.14 percent in Hong Kong and 12.26 percent in the US. Xpeng was down 22.2 percent in Hong Kong and 13.79 percent in the US. Li Auto was down 19.6 percent in Hong Kong and 20.61 percent in the US.
Last week, some entities chose to “be first” and this may have turned into a fire sale where institutional shareholders simply have given up on China ADRs as an asset class, Deutsche Bank analyst Edison Yu’s team said Monday.
These big declines represent delisting fear and aggressive selling by prominent large holders, and a near-term technical trough could occur in the coming weeks, but multiples will remain paralyzed compared to their US peers for some time, the team said in a research note sent to investors on Monday.
In addition to Nio, Xpeng and Li Auto, BYD also opened 6.7 percent lower in Hong Kong Tuesday.
