Alibaba shares plunge as Trump order stirs China trade angst
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Alibaba’s American depositary receipts closed down 10 per cent, the biggest decline since October 2022.
PHOTO: AFP
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San Francisco – Alibaba Group Holding shares tumbled as US President Donald Trump’s latest executive order stirred fears about deepening trade tensions between the United States and China.
Alibaba shares in Hong Kong on Feb 25 slumped 3.8 per cent, as a gauge of Chinese shares tumbled 2.8 per cent.
The company’s American depositary receipts fell 10 per cent overnight on Feb 24, the biggest decline since October 2022.
The sell-off marks a sharp reversal after a run-up in Alibaba and other China technology stocks in recent weeks amid optimism about artificial intelligence in the wake of DeepSeek and President Xi Jinping’s meeting with corporate leaders, including Alibaba founder Jack Ma.
Alibaba had gained about 70 per cent in 2025 through Feb 21’s close, while the Nasdaq Golden Dragon China Index rose 18 per cent.
Over the weekend, Mr Trump directed the Committee on Foreign Investment in the US to limit Chinese spending on technology and other strategic US sectors.
Meanwhile, Alibaba pledged to invest more than 380 billion yuan (S$70 billion) on AI infrastructure
“A contest is seemingly under way between Mr Trump and Beijing over who has a bigger say over Chinese equity performance,” Evercore strategists including Mr Neo Wang wrote in a research note.
The Evercore strategists pointed to an upcoming meeting of China’s National People’s Congress on March 5 for the next potential catalyst.
“Now, it is Beijing’s turn,” they wrote. BLOOMBERG
