--- title: "Why Are Chinese Tech Stocks Down Today? Alibaba (BABA) Leads Sell-Off" description: "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%," type: "news" locale: "en" url: "https://longbridge.com/en/news/276047472.md" published_at: "2026-02-16T09:31:41.000Z" --- # Why Are Chinese Tech Stocks Down Today? Alibaba (BABA) Leads Sell-Off > 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. 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%. ### President's Day Sale - 70% Off - Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions - Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential The Pentagon list named Alibaba, Baidu, and BYD as companies allegedly connected to China's military. The document was later marked "unpublished" and removed without explanation, but the move still unsettled investors and kept sentiment cautious. Alibaba denied the allegation, saying it "is not a Chinese military company nor part of any military-civil fusion strategy," and added that it would take legal action against attempts to misrepresent the business. ## **What This Means for Chinese Tech Stocks** 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. 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. ## **Which Chinese Stock Is the Best Buy?** Turning to Wall Street, all three stocks mentioned above show upside potential ahead. Alibaba has a **Strong Buy** consensus with about **30% upside**, while BYD Company also carries a **Strong Buy** rating and roughly **28% upside**. Baidu is likewise rated **Strong Buy** and offers about **24% upside**. Among them, Alibaba shows the highest expected return, though analysts remain broadly positive on all three names. ### Related Stocks - [BABA.US - Alibaba](https://longbridge.com/en/quote/BABA.US.md) - [KWEB.US - Krne Csi China Internet](https://longbridge.com/en/quote/KWEB.US.md) - [513040.CN - E Fund CSI HK Connect Internet ETF](https://longbridge.com/en/quote/513040.CN.md) - [BYDDY.US - BYD Company](https://longbridge.com/en/quote/BYDDY.US.md) - [BIDU.US - Baidu](https://longbridge.com/en/quote/BIDU.US.md) - [KBAB.US - KraneShares 2x Long BABA Daily ETF](https://longbridge.com/en/quote/KBAB.US.md) - [BABX.US - BABA 2x Long Daily ETF - GraniteShares](https://longbridge.com/en/quote/BABX.US.md) - [01211.HK - BYD COMPANY](https://longbridge.com/en/quote/01211.HK.md) - [09888.HK - BIDU-SW](https://longbridge.com/en/quote/09888.HK.md) - [513770.CN - Hwabao CSI HK Equities Internet ETF](https://longbridge.com/en/quote/513770.CN.md) ## Related News & Research | Title | Description | URL | |-------|-------------|-----| | 阿里发布千问 3.5，性能媲美 Gemini 3， Token 价格仅为其 1/18 | 阿里巴巴于 2 月 16 日发布了新一代大模型千问 Qwen3.5-Plus，性能媲美 Gemini 3 Pro，成为全球最强开源模型。该模型参数为 3970 亿，推理效率显著提升，API 价格为每百万 Token 仅 0.8 元，为 Ge | [Link](https://longbridge.com/en/news/276045921.md) | | 阿里这次出招具身智能，剑指深度环境理解力 | 引入了时空记忆和物理世界推理两项核心能力。 | [Link](https://longbridge.com/en/news/275425215.md) | | 市场监管总局约谈阿里巴巴、抖音、百度、腾讯、京东、美团、淘宝闪购等平台企业 | 市场监管总局于 2 月 13 日约谈了阿里巴巴、抖音、百度、腾讯、京东、美团和淘宝闪购等平台企业，要求它们遵守相关法律法规，落实主体责任，规范促销行为，并杜绝 “内卷式” 竞争，以维护公平竞争市场环境，促进平台经济的创新与健康发展。 | [Link](https://longbridge.com/en/news/275975190.md) | | 五角大楼将阿里巴巴和比亚迪列入中国军方名单，但据报道在特朗普与习近平会面前撤回了相关文件 | 五角大楼短暂将阿里巴巴和比亚迪列入与中国军方有 alleged 关系的公司名单，引发了人们对特朗普与习近平四月峰会前美中紧张局势加剧的担忧。更新后的名单中还包括百度， reportedly 在提交后不久便被撤回。尽管被列入名单并不立即带来法 | [Link](https://longbridge.com/en/news/275968276.md) | | 阿里巴巴发布了新款 Qwen3.5 模型，以迎接 “代理 AI 时代” | 阿里巴巴推出了其新的人工智能模型 Qwen 3.5，该模型旨在独立执行任务，并具有显著的性能提升。该模型的成本比其前身低 60%，效率提高了八倍。此次发布旨在增强阿里巴巴的 Qwen 聊天机器人应用在与字节跳动的 Doubao 等竞争对手之 | [Link](https://longbridge.com/en/news/276045126.md) | --- > **Disclaimer**: This article is for reference only and does not constitute any investment advice.