Alibaba, JD.com, Baidu slump as Chinese stocks plunge on COVID worries
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Alibaba (NYSE:BABA), JD.com (NASDAQ:JD), Baidu (NASDAQ:BIDU) and a number of other Chinese tech stocks slumped early Monday after China's zero COVID policy became stricter, further intensifying lockdown's in the world's most populous country and sending markets spiraling around the world.
The CSI 300 Index fell nearly 5% on Monday, bringing the year-to-date decline to more than 22%, as China ordered more testing near Beijing and further locked down areas of the capital due to rising COVID-19 cases. It's likely that more cases will appear over the next several days, further adding to investors' woes.
Alibaba (BABA), JD.com (JD) and Baidu (BIDU) all saw declines of at least 2.5%, led by Baidu's slump of nearly 5% in premarket trading.
Other Chinese internet stocks, such as Pinduoduo (PDD), Bilibili (BILI), NetEase (NTES), Kingsoft Cloud (KC) and DiDi Global (DIDI) also declined between 2% and 5%.
Alibaba (BABA) and other Chinese tech stocks have also had to deal with worries over increased regulation in recent days, including the news earlier this month that the Central Cyberspace Administration of China said it would start a two-month "special action" to curb illegal content on streaming and short video sites.
Additional worries, such as regulators imposing heavy fines on DiDi (DIDI) for its U.S. initial public offering have also weighed on Chinese tech stocks.
Earlier this month, Charlie Munger's Daily Journal Corp. (DJCO) disclosed it has cut its stake in the Chinese Internet and e-commerce giant Alibaba (BABA) in half.