China Blue-Chip Index Enters Bear Market; Alibaba Drops 6%
BABA is trading near its 52-week low of $91.99 (8.3% above the low).
Summary
The CSI300 fell 1.8% to 4,036.30, its lowest since July 2025 and 20.2% below its June 22 peak, confirming a bear market. Hong Kong was hit harder: the Hang Seng Tech Index slid 5% to a two-year low and Alibaba dropped more than 6%. The selloff is broad — CSI AI Index down 3.3%, ChiNext down 4.4% — driven by doubts over AI valuations, disappointment with Beijing's piecemeal stimulus, and a tax-filing deadline on offshore trusts that has founders selling assets to raise cash. For Alibaba this compounds pressure from its own AI spending: the August 6-K showed 9% revenue growth but a 75% drop in net income, and the company raised $10.2 billion in a discounted share placement in late August. The stock is now well below the HK$112.70 placement price, leaving those buyers underwater.
At the time of this announcement, BABA was trading at $99.65 on NYSE in the Trade & Services 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.