Why Chinese Tech Stocks Alibaba, Tencent, and Futu Holdings Plunged Today
Shares of major Chinese tech and consumer stocks such as tech conglomerates Alibaba (NYSE: BABA) and Tencent (OTC: TCEHY), as well as digital online broker Futu Holdings (NASDAQ: FUTU) were all falling today. They were down 4.3%, 5.6%, and 5.2%, respectively, as of 1:49 PM ET.The across-the-board move indicates that the declines had to do with Chinese stocks broadly and not individual stock news. Most likely, the downdraft was caused by disappointment over today's action -- or rather inaction -- by China's central bank. In addition, a Wall Street analyst issued a cautious note on Chinese stocks last night after a huge year-to-date rally, which may have encouraged some profit-taking.The big rally in Chinese stocks since last summer, and especially since the beginning of 2025, has largely been due to new stimulus measures. Some are already announced, and some are anticipated in the future.Continue reading
Shares of major Chinese tech and consumer stocks such as tech conglomerates Alibaba (NYSE: BABA) and Tencent (OTC: TCEHY), as well as digital online broker Futu Holdings (NASDAQ: FUTU) were all falling today. They were down 4.3%, 5.6%, and 5.2%, respectively, as of 1:49 PM ET.
The across-the-board move indicates that the declines had to do with Chinese stocks broadly and not individual stock news. Most likely, the downdraft was caused by disappointment over today's action -- or rather inaction -- by China's central bank. In addition, a Wall Street analyst issued a cautious note on Chinese stocks last night after a huge year-to-date rally, which may have encouraged some profit-taking.
The big rally in Chinese stocks since last summer, and especially since the beginning of 2025, has largely been due to new stimulus measures. Some are already announced, and some are anticipated in the future.
