Alibaba Drops 6% as China Tech Selloff Sends Blue Chips to 15-Month Low
BABA is trading near its 52-week low of $91.99 (11% above the low).
Summary
Alibaba fell more than 6% in Hong Kong as a broad selloff in Chinese AI and tech names dragged the CSI300 down 1.8% to 4,036.30, its lowest close since July 2025 and 20.2% below its June 22 peak. The Hang Seng Tech Index slid 5% to a two-year low, with Tencent off 2.9%. The trigger is a mix of doubts about AI growth and valuations, disappointment over Beijing's piecemeal stimulus, and a tax-reporting deadline on offshore trusts that has founders selling shares. Shanghai's STAR Market, home to the country's AI and chip leaders, is down 40% from July highs. This is a sentiment-driven move, not company-specific news, but it hits Alibaba directly after its own AI push: the August Qwen3.8-Max launch lifted shares 7%, and the company has since committed heavily to AI infrastructure, including a $10.2 billion placement in August and the Zhenwu V900 chip launch in September.
At the time of this announcement, BABA was trading at $102.43 on NYSE in the Technology sector, with a market capitalization of approximately $262.9B. The 52-week trading range was $91.99 to $182.50. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.