Markets Do Not Expect Much Out Of Alibaba, Other Chinese Big Tech's Quarterly Earnings

China's post-Covid recovery is losing steam, reducing the expectancies of a boost in Chinese tech shares from earnings.
JD.com Inc JD will kick off the season on Thursday with flat revenue growth likely for the first quarter, marking its slowest pace on record, Bloomberg reports.
Next week, Alibaba Group Holding Limited BABA will likely report revenue that grew less than 3%. Also, Tencent Holdings Ltd's TCEHY sales may still lag the double-digit pace of the past, according to analyst estimates.
The lackluster expectations led to traders snapping bearish bets in the options market, as per Bloomberg.
Tech stocks have worsened since their January peak as China's consumption-led rebound failed to beat expectations. The sector faces headwinds from growing U.S.-China tensions and high global interest rates.
A return of risk appetite and material upgrades in earnings outlook for the companies are needed to spark the next leg of China's tech rally, Bloomberg analyst Robert Lea opined.
Others cautioned against the market's momentum shifted away from tech into more popular trades, including a recent frenzy on financial shares thanks to its links to the government.
Price Action: BABA shares traded higher by 0.10% at $82.30 premarket on the last check Wednesday.