Why Alibaba, Most Other Tech Peers Are Sliding In Hong Kong Today

Shares of U.S.-listed Chinese tech giants, which led the rally in previous sessions, were a mixed bag on Tuesday in Hong Kong as the market opened after a long weekend. 

While Alibaba Group Holding Ltd BABA, JD.Com JD, and Baidu Inc BIDU slipped, Tencent Holdings TCEHY was trading nearly flat at press time. 

Shares of the Chinese tech giants ended higher in the U.S. markets on Monday. 

The Macro Factors: The benchmark Hang Seng Index shed 0.22% as major tech stocks swung wildly during early trading. 

According to Bloomberg, Hong Kong’s economy is expected to contract in the first quarter as it imposed tough COVID-19 curbs and China’s worsening Omicron outbreak disrupted trade with the financial hub. Its gross domestic product (GDP) is estimated to have fallen 1.3% in the January-to-March period from a year earlier, according to the report. 

China and U.S. regulators are also discussing operational details of an audit deal that Beijing intends to sign this year in the latest attempt to keep Chinese companies listed on U.S. exchanges.

Company In News: Alibaba Shared tumbled as much as 6% before recovering a bit during the early trading hours. The steep fall in its stock came after news reports surfaced that Chinese authorities had placed an individual with the last name Ma under “compulsory curbs” in Hangzhou — home to ​Jack Ma-founded Alibaba and its affiliate Ant Group.

Mizuho Financial Group said it continues to see upside in Alibaba, JD, and Baidu. It slashed its target prices for the tech giants but maintained a ‘buy’ rating. Mizuho cut the target price for Baidu from $300 to $285, for JD.com from $100 to $90, and for Alibaba Group from $180 to $160.