Alibaba, Baidu Stocks Fall as Chinese Tech Index Slides Into Correction

Oct 10 - Chinese technology shares retreated Monday, with the Hang Seng Tech Index slipping further into correction territory as investors reacted to renewed trade tensions and broader market uncertainty.

The Hang Seng Tech Index, which includes major Hong Konglisted Chinese firms such as Alibaba BABA, Baidu BIDU, JD.com JD, and Tencent, fell about 2%. The benchmark has now declined roughly 11% since March 18, erasing part of its early-year rally. The broader Hang Seng Index dropped 1.3%.

U.S.-listed shares of Alibaba eased 2.3% in premarket trading, while Baidu fell 2.4% and JD.com slipped 1.3%. The declines came despite no major company-specific news, suggesting some investors may be taking profits after a strong first-quarter performance for Chinese tech.

The Hang Seng Tech Index remains up about 21% so far in 2025, supported earlier by enthusiasm over China's homegrown artificial intelligence model, DeepSeek, which had stirred optimism about the sector's competitiveness against Western peers.

Market sentiment has weakened recently amid policy uncertainty as new U.S. tariffs on Chinese imports are expected to take effect this week, potentially pressuring valuations further.