XPeng Inc. (09868.HK) saw its stock price plummet by 5.49% in the early trading session on Wednesday, as Hong Kong's stock market opened significantly lower amidst escalating US-China trade tensions and a broader tech sector decline.

The sharp decline in XPeng's shares comes as the Hang Seng Index fell 3.1% and the Hang Seng Tech Index dropped 4.3% at the market open. The sell-off was triggered by news that the United States plans to impose 104% duties on imports from China, set to take effect shortly after midnight. This development has reignited concerns over the ongoing trade disputes between the world's two largest economies.

XPeng was not alone in its descent, as other major Chinese tech and EV companies also experienced significant drops. Nio fell 7%, while Alibaba and JD.com joined XPeng with 5% declines. Industry giants Tencent, Xiaomi, and BYD also saw their shares fall by 3%. The widespread nature of these declines underscores the market's heightened sensitivity to geopolitical tensions and their potential impact on Chinese companies, particularly those in the tech and electric vehicle sectors.