The uncertainty that surrounds Chinese companies for Trump’s measures momentarily seized technology Alibaba, which despite her announcement on AI fell into the Hong Kong Stock Exchange.
The Alibaba actions They recovered on Tuesday at Wall Street after collapsing more than 10% earlier after the new Donald Trump directive that generated concerns about technological “war” between China and the US.
Chinese actions in the Hong Kong market dropped 3.7% while in New York they dropped 10.3%. However, they ended with a daily rise of 3.9%. Monday registered its greatest decline since October 2022.
The Trump weekend order to the US Foreign Investment Committee Restricting Chinese investments in technology and other strategic sectors, added uncertainty. In addition, the US administration plans to audit foreign companies contributed in their stock market and review their property structures, which aggravated the Fall of Chinese actions in the US.
These descents threaten con Revert the rally that Chinese technological actions experienced globally this yeardriven by optimism around initiatives such as Deepseek. Although investors initially reduced importance to Trump’s tariff measures on China, they are now reconsidering geopolitical risks.
The mass sale was described by Neo Wang, the main macroeconomic analyst in China in Evercore Isi, as a phenomenon of “selling first and asking later.” According to Wang, Trump’s memorandum seems to be a list of all measures that the former president wants to implement, mainly looking for influence and negotiation power in conversations with China.
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Alibaba’s commitment to AI
On the other hand, Alibaba announced its commitment to invest more than 380,000 million yuan (about 53,000 million dollars) in artificial intelligence infrastructure over the next three years. This plan would position Alibaba as one of the largest investors in China.
Wang also pointed out in his report that there seems to be a kind of contest between Trump and Beijing on who has more impact on the performance of Chinese Variable Income. Despite the fall of the shares on Monday, Alibaba has experienced an increase of more than 50% so far this year, and the Nasdaq Golden Dragon China index has grown almost 12%.
Source: Ambito
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