XPeng (09868.HK) saw its stock price plunge 5.01% in intraday trading, as Chinese electric vehicle makers faced a significant selloff amid broader market weakness in Hong Kong. The decline comes as investors grapple with concerns over China's economic performance and disappointing corporate earnings.

The selloff in Chinese EV stocks was primarily triggered by BYD's aggressive price cuts of up to 35% announced late last week. This move has intensified competition in the already crowded Chinese EV market, putting pressure on smaller players like XPeng. BYD's shares led the decline, falling 9%, while other EV makers such as Li Auto and NIO also experienced significant drops of 6% and 3% respectively.

The broader market sentiment also contributed to XPeng's decline. The Hang Seng Index fell 1.4%, while the Hang Seng Tech Index dropped 2%, ending a six-week rally that had previously driven the benchmark index to a two-month high. Investors are now awaiting fresh catalysts as they digest signs of China's economic challenges amid ongoing trade tensions with the United States. The upcoming release of China's official PMI manufacturing index, expected to show continued contraction, has further dampened investor enthusiasm in the region.