Why Alibaba And Other Major Stocks Are Sliding In Hong Kong Today

Shares of U.S.-listed Chinese tech companies Alibaba Group Holdings Ltd. BABA, JD.Com Inc. JD, Tencent Holdings TCEHY, and Baidu Inc. BIDU continued their losing streak in early trading in Hong Kong on Monday.

Macro Factors: The overall Hang Seng index was trading nearly 3% lower amid negative cues from its global peers.

Worries of a looming recession intensified after the U.S. 10-year Treasury yield climbed to 2.72%, the highest since 2019. It was the first negative spread since 2019.

Australia’s 10-year bond yield hit its highest level of 3% for the first time since 2015, as investors fear the Fed’s more aggressive tightening approach to combat rising inflation.

Meanwhile, Shanghai residents are screaming in frustration from their balconies as the draconian COVID-19 lockdown enters its third week in the financial hub. Economists worldwide have said the lockdown would likely deal a heavy blow to businesses reliant on consumer spending and further constrain the global supply chain.

Company In News: The Cyberspace Administration of China interviewed representatives from companies including Tencent, Alibaba Group, and JD.com to address job cuts totaling 216,800 from July to mid-March.

Also, after Tencent decided to shut down its game streaming service, the Chinese tech stocks went jittery.