Alibaba results weigh on Hong Kong stocks, with Baidu, JD.com and Meituan sending index to 2-month low

Alibaba’s results broadly reflect concerns about China’s reopening losing momentum, Natixis analysts says

Alibaba’s earnings prove to be a drag on Chinese internet bellwethers, pulling Tech Index lower

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Pedestrians walk past a stock ticker outside Exchange Square, the building housing the Hong Kong stock exchange. Photo: EPA-EFE

Published: 10:45am, 19 May 2023Updated: 4:56pm, 19 May 2023

Hong Kong stocks fell to a two-month low after Alibaba’s underwhelming revenue growth for the quarter disappointed investors, adding to concerns China’s post-Covid recovery is losing momentum.

The Hang Seng Index slumped 1.3 per cent to 19,450.57 on Friday, losing 0.8 per cent for the week and closing at its lowest point since March 16. The Tech Index fell 2.4 per cent, while the Shanghai Composite Index declined 0.3 per cent.

Alibaba Group Holding plunged 6 per cent to HK$82.40, JD.com dropped 4.7 per cent to HK$137.20 and Baidu retreated 4.5 per cent to HK$120.00. Meituan lost 3.7 per cent to HK$128.60. The Chinese delivery giant is set to launch in Hong Kong as early as next Monday, according to a Bloomberg report quoting sources.

Geely Auto fell 0.4 per cent to HK$9.42. The carmaker on Thursday said it had bought a 17 per cent stake in British sports car maker Aston Martin. Its peer Nio lost 1.9 per cent to HK$61.80 while Xpeng retreated 1.9 per cent to HK$35.55.

Alibaba reported a 2 per cent increase in fourth-quarter revenue at 208.2 billion yuan (US$30.3 billion), missing analysts’ estimates of 209.2 billion yuan. The company also approved a full spin-off of its business units, starting with Cloud Intelligence Group, which is set to be publicly listed within the coming year, chairman and CEO Daniel Zhang Yong said.

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