JD.com (09618.HK) saw its shares plummet by 16.18% in intraday trading on Monday, as Hong Kong's technology sector faced a significant sell-off. The e-commerce giant's steep decline was part of a broader market downturn that affected major Chinese tech companies listed in Hong Kong.
The sell-off was widespread across the tech sector, with the Hang Seng Tech Index dropping 16.4%. JD.com's main competitors also experienced substantial losses, with Alibaba falling 17% and Tencent down 12%. Other notable declines included XPeng (-19%), Xiaomi (-18%), and NIO (-15%), indicating the breadth of the market rout.
The sharp decline in tech stocks is attributed to several factors, including escalating US-China trade tensions and concerns about the Chinese economy. Recent US tariffs on Chinese imports and China's retaliatory measures have raised fears of an accelerated economic decoupling between the two nations. Additionally, investors are worried about the potential impact of sustained fiscal stimulus on China's public finances, as the country attempts to offset the negative effects of trade disputes and support growth amid subdued domestic demand.
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