Market Outlook for Thursday, October 28, 2021

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News - "Alibaba, JD And Nio Rival Xpeng Strike Gains Even As Hang Seng Index Dips On Evergrande Woes"

Shares of Alibaba Group Holding Limited (NYSE: BABA), Baidu Inc. (NASDAQ: BIDU), JD.Com Inc. (NASDAQ: JD), Tencent Holdings Inc. (OTC: TCEHY) and Xpeng Inc. (NYSE: XPEV) traded notably higher in Hong Kong on Thursday, while Li Auto Inc. (NASDAQ: LI) traded flat.

What’s Moving: Chinese e-commerce giant Alibaba’s shares traded 2.1% higher at HKD 168.00 in Hong Kong, while technology company Baidu’s shares have risen 0.9% to HKD 164.60 and e-commerce company JD.Com’s shares are up 0.6% to HKD 314.40.

See Also: How To Buy Xpeng Motors (XPEV) Stock

Electric vehicle maker Xpeng’s shares have gained 0.4% to HKD 180.60, while peer Li Auto’s shares traded flat at HKD 128.00.

Tech conglomerate Tencent Holdings' shares are up 0.5% to HKD 489.60.

Hong Kong’s benchmark Hang Seng Index retreated after opening higher and was down almost 0.4% at the time of writing. The index closed almost 1.6% lower on Wednesday.

Why Is It Moving? The Hang Seng Index is lower for a third straight day in volatile trade amid lingering worries about embattled property developer China Evergrande Group’s (OTC: EGRNY) debt crisis.

Evergrande, which avoided default on an interest payment last week, is due to pay on Friday a $45.17 million bond coupon that was originally due in late September, Bloomberg reported.

Advisers representing Evergrande and a group of its offshore bondholders have signed non-disclosure agreements in preparation for potential debt negotiations, the report added.

Shares of Chinese companies closed mostly lower in U.S. trading on Wednesday after the Dow Jones Industrial Average and the S&P 500 Index ended firmly in negative territory.

Alibaba’s shares closed almost 0.5% lower and Nio’s shares ended lower by almost 2.9%.

Read Next: EV Share Of Total China Passenger Vehicle Sales Rises To 18.6% In Q3 As Nio, Volkswagen, Others Take On Tesla

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Movers & Shakers - "Mike Tyson Is Getting Back Into The Cannabis Ring, Launches Tyson 2.0 With Columbia Care"

Legendary heavyweight boxer Mike Tyson is launching Tyson 2.0, a new company the Tyson-branded cannabis products to market.

Tyson 2.0, which represents the boxer's re-entry into the world of commercial cannabis, is being led by cannabis industry leaders Adam Wilks and Chad Bronstein, CEO and founder of Fyllo, who will serve as the company's chairman.

The new entity will provide retailers across the country with a suite of products designed to reach Mike Tyson's national audience.

"Cannabis has changed me for the good both mentally and physically, and I want to share that gift with others who are also seeking relief," Tyson said Wednesday. "My vision for Tyson 2.0 is to make high-quality cannabis products available to consumers at various price points."

Cannabis company Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTC: CCHWF) (FSE: 3LP), which recently reported that its whole flower is available for purchase in several places throughout New York, has agreed to be the brand's national cultivation and manufacturing partner in the markets where the company operates.

In addition to selling the Tyson products throughout its dispensary network, Columbia Care will also sell them wholesale to other retailers.

Jesse Channon, Columbia Care's chief growth officer, said he is grateful to partner with Tyson, adding that "celebrity sponsorship is one of the most effective ways to build immediate product and brand recognition."

Channon added that "It is an honor to be a part of one of the largest cultivation and distribution partnerships in the industry, and we are looking forward to working with the Tyson 2.0 team to bring these products, and the passion behind them, to markets across the country."

Tyson's Cannabis Journey

Apart from partnering with several cannabis companies, including Planet 13 Holdings Inc (OTCQX: PLNHF) and Weedmaps, Tyson also launched a cannabis rolling equipment line.

Last year, The Ranch Companies, founded by Tyson, acquired a global license to print cannabis products. In partnership with Smart Cups, the famous boxer ventured into printing ingestible cannabis products with accurate and consistent dosing.

CCHWF Price Action

Columbia Care's shares traded 2.4671% higher at $3.115 per share at the time of writing Wednesday morning.

Photo: Courtesy of Tyson 2.0