Chinese tech stocks fell Monday as the Hang Seng Tech index entered correction territory, with investors taking profits after a strong first quarter for the sector.
The decline is largely due to President Donald Trump’s tariff policy and the introduction of fresh US levies on imports. The move has weighed on market sentiment, particularly among US-listed Chinese tech stocks such as Alibaba and JD.com.
Baidu stock also fell 2.4% ahead of the open, while the broader Hang Seng Index dropped 1.3%. Despite the decline, Chinese tech stocks are still up 21% since the start of the year.
The recent success of China’s DeepSeek artificial intelligence model has been a key driver of gains for Chinese tech stocks this year. However, investors now seem to be taking profits, suggesting that the sector may have reached its peak.
The Nasdaq 100 is down 8% in 2025, and US-listed shares of JD.com fell 1.3%, while Alibaba’s shares dropped 2.3%. Baidu stock also took a hit, falling 2.4% ahead of the open.
Source: https://www.barrons.com/articles/alibaba-baidu-stock-chinese-tech-shares-2ad7cba4