TLDR:
- China tech stocks like Alibaba, JD.com, and Baidu pulled back after rallying on stimulus hopes
- Recent Chinese government stimulus measures failed to impress investors
- China’s economy shows signs of weak demand, with very low core inflation
- Some analysts see the pullback as a potential buying opportunity
- Alibaba and other Chinese stocks still trade well below their 2020-2021 highs
U.S.-listed shares of Chinese technology giants like Alibaba, JD.com and Baidu fell on Tuesday, giving back some of their recent gains as investors reassessed the impact of Beijing’s latest economic stimulus measures.
Alibaba’s stock dropped over 4% to $102.46, pulling back nearly 10% from its October highs after surging almost 30% in late September and early October on hopes for more forceful government action to boost China’s sluggish economy.

Shares of e-commerce rival JD.com slid 7% to $40.90, retreating 13% from recent peaks after skyrocketing nearly 60% during the China stock rally. Baidu’s stock fell more than 4% to $94.85, declining 7% this week after jumping about 30% in the initial stimulus-fueled rally.
The pullback came as investors debated whether China’s stimulus plans announced so far would be sufficient to reinvigorate growth in the world’s second-largest economy.
While China’s Finance Ministry outlined some measures over the weekend, including support for state banks and local governments, many market participants found the steps lacking in concrete details and numerical targets.
“The Saturday press conference was strong on determination but lacking in numerical details,”said Vasu Menon, managing director for investment strategy at OCBC in Singapore. He noted it did not deliver the “big bang fiscal stimulus” some investors had hoped to see.
Adding to concerns, data released Sunday showed China’s core consumer price index rose just 0.1% in September, the lowest rate since February 2021, indicating the country remains on the brink of deflation – a sign of persistently weak consumer demand.
The recent volatility highlights the challenges facing Chinese stocks as the country grapples with a property crisis, high youth unemployment, and slowing economic growth. Major Chinese tech firms have seen their sales growth slow dramatically, with Alibaba’s revenue up just 4% last quarter while JD.com grew only 1.2%.
Still, some analysts view the pullback as a potential buying opportunity, arguing that valuations remain attractive for China’s internet giants. Michael Burry and David Tepper recently made Alibaba their largest position, though they may have trimmed holdings as the stock rallied.
Wall Street analysts maintain bullish price targets, with Macquarie upgrading Alibaba to “Outperform” with a $145 target, implying over 30% upside.
For now, Alibaba stock is hovering near its 21-day moving average after the recent decline. While still well below its 2020-2021 highs reached before China’s tech crackdown, shares are trading at their highest levels since August 2023.
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