US-listed Alibaba, JD.com shares tumble after huge rally in Chinese tech
and other US-listed Chinese tech giants traded lower on Friday, but only after surging in the previous session in an attempt to rebound from a difficult year.
Alibaba (ticker: BABA) fell 0.6% in pre-market trading on Friday after closing with a gain of nearly 10% on Thursday.
(JD) fell 0.7% after jumping 7.3% on Thursday.
(BIDU) fell 1.1%, after gaining 10.5% in the previous session, and
(BILI) was down 3% after rising more than 12% on Thursday.
The Nasdaq Golden Dragon China Index, made up of Chinese companies whose shares are traded in the United States, rose 9.4% on Thursday, its largest increase since 2008, according to Bloomberg.
In an abridged trading session in Hong Kong on Friday, Alibaba rose 8.2%, JD.com 5.5%, Baidu 8.3% and Bilibili 7.8%.
Hang Seng Technology Index,
which tracks Hong Kong-listed shares of China’s biggest tech companies, rose 3.6% on Friday.
The reasons for the gains in shares of Chinese internet and tech companies were varied, with some market participants citing bargain hunting while others citing traders closing short positions.
Whatever the reasons, Alibaba’s gains on Thursday pushed the stock out of its annual lows. It ended the session at $ 122.99, down from its low of $ 111.96 in 2021, a level it closed on December 3. US stocks are down 47% this year.
Alibaba, like much of the rest of China’s tech industry, has found itself squarely on the wrong side of regulators as President Xi Jinping tightens his grip on the country’s economy. Beijing has launched a crackdown on better regulations to strengthen online security, antitrust laws and data security.
Baird analysts said earlier this week that Alibaba was a move for investors looking for “low valuations and battered stocks.”
Write to Joe Woelfel at [email protected]