XPeng (09868.HK) saw its stock price plummet by 5.01% in Hong Kong trading on Monday, as Chinese electric vehicle (EV) manufacturers faced a broad sell-off. The decline comes in the wake of industry leader BYD's aggressive price cuts, which have sent shockwaves through the sector.

The sell-off in EV stocks was part of a larger downturn in the Hong Kong market, with the Hang Seng Index falling 1.4% and the Hang Seng Tech Index dropping 2%. BYD, which initiated price cuts of up to 35% late last week, experienced the steepest decline among EV makers, plunging 9%. Other major players in the sector also suffered, with Li Auto down 6%, and NIO falling 3%.

The broader market decline reflects investor concerns about China's economic recovery and corporate earnings amid ongoing trade tensions. As the market awaits fresh catalysts, attention is turning to upcoming economic data, including China's official PMI manufacturing index for May, which is expected to show a slight improvement but remain in contraction territory. The uncertainty surrounding China's economic outlook and the intensifying competition in the EV market are likely to keep pressure on stocks like XPeng in the near term.