<div id="readability-page-1"><p>Alibaba Group (BABA) (HK:9988), China's largest e-commerce and cloud computing company, led a drop in Chinese technology stocks after the U.S. Defense Department briefly placed several major firms on a military-linked companies list. The Chinese AI leader's stock slid more than 3% in Hong Kong, while Baidu (BIDU) (HK:9888) and BYD Co. (BYDDF) (HK:1211) were down about 1%.</p><h3>President's Day Sale - 70% Off</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>The Pentagon list named Alibaba, Baidu, and BYD as companies allegedly connected to China's military. The document was later marked &#34;unpublished&#34; and removed without explanation, but the move still unsettled investors and kept sentiment cautious.</p> <p>Alibaba denied the allegation, saying it &#34;is not a Chinese military company nor part of any military-civil fusion strategy,&#34; and added that it would take legal action against attempts to misrepresent the business. </p> <h2><strong>What This Means for Chinese Tech Stocks</strong></h2> <p>When Tencent (TCEHY) and CATL (CYATY) were added to the list in 2021, their stocks dropped quickly. There were no fines or direct penalties, but the move created fear in the market. For instance, some investment funds stepped back, banks tightened compliance checks, and a few U.S. tech partnerships slowed. It showed that being named alone can create pressure, even without formal restrictions.</p> <p>That's why investors are watching Alibaba, Baidu, and BYD closely now. All three are expanding in AI, cloud, robotics, and self-driving tech, areas already linked to U.S. export rules. If they are officially added to the list, partners and investors may step back until there is more clarity.</p> <h2><strong>Which Chinese Stock Is the Best Buy?</strong> </h2> <p>Turning to Wall Street, all three stocks mentioned above show upside potential ahead. Alibaba has a <strong>Strong Buy</strong> consensus with about <strong>30% upside</strong>, while BYD Company also carries a <strong>Strong Buy</strong> rating and roughly <strong>28% upside</strong>. Baidu is likewise rated <strong>Strong Buy</strong> and offers about <strong>24% upside</strong>.</p> <p>Among them, Alibaba shows the highest expected return, though analysts remain broadly positive on all three names.</p></div>

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<p>Chinese tech stocks, led by Alibaba (BABA), fell after the U.S. Defense Department briefly listed several firms, including Alibaba, Baidu, and BYD, as military-linked. Alibaba's stock dropped over 3%, while Baidu and BYD fell about 1%. Although the list was later removed, it unsettled investors, recalling past market reactions to similar listings. Despite the concerns, Wall Street analysts maintain a positive outlook, with Alibaba rated as a Strong Buy and expected to rise by 30%. Baidu and BYD also show strong potential with 24% and 28% upside, respectively.</p>

- Alibaba Group's stock declined over 3% after the U.S. Defense Department briefly listed it and other companies as linked to China's military.  
- Despite the list being unpublished, it unsettled investors, raising concerns about potential repercussions for Alibaba, Baidu, and BYD in the market.  
- Analysts maintain a Strong Buy consensus for all three companies, with Alibaba showing the highest expected return of about 30% upside.

Why Are Chinese Tech Stocks Down Today? Alibaba (BABA) Leads Sell-Off