Alibaba Group Holding Ltd. (BABA) plunged nearly 9% in pre-market trading on Monday, as the Chinese e-commerce giant was caught in a broad sell-off of Hong Kong-listed technology stocks and investor disappointment over Beijing's lack of new stimulus measures.
Hong Kong's Hang Seng Tech Index tumbled 7.9% at the midday break, with Alibaba and other major tech firms like Meituan and Alibaba Health Information suffering sharp declines. The overall Hang Seng Index fell 5.6%, as investors took profits after a recent rally.
Adding to the selling pressure, China's National Development and Reform Commission failed to unveil specific new stimulus plans at a high-profile press conference on Monday, disappointing investors who had been hoping for more aggressive measures to support the country's economy. While policymakers said they were "fully confident" of meeting targets, the lack of details on stimulus actions sparked a selloff in mainland Chinese stocks.
Alibaba's pre-market plunge reflects the convergence of these two negative factors – the broad tech sell-off in Hong Kong and investor disappointment over China's stimulus plans. As a major Chinese tech company with a significant listing in Hong Kong, Alibaba was caught in the crosshairs of both market forces.