Chinese Stocks Plunge in US as Trump’s Executive Order Sparks Decoupling Fears:

Chinese shares plunged in the United States on Monday, led by a drop of almost 10% in Alibaba Group's trading, marking the company's largest drop since 2022. This comes after Donald Trump’s latest executive order, which raised concerns about financial and technological separation between signifiant global economies.

The company’s American depositaries receipts fell by 10%, which is the largest drop recorded since October 2022. Like Alibaba, Bilibili Inc. and JD.com Inc. also fell and the Nasdaq Golden Dragon Index dropped by 5.2%.

Trump instructed his cabinet over the weekend to push limits on Chinese investment in technology and other vital reserves within the US. In addition to this, AUDIT foreign enterprises which are based on US exchanges and claims over their ownership will also be conducted. Most likely, these measures added in combination to larger losses which were sustained by Chinese shares trading in America compared to shares allocated in Hong Kong and China. The dip in Chinese shares can be noticed along with the dip in the Hong Kong and China indexes, however, the vision for beating China’s tech indexes rests solely with the Anteater, which is overly optimistic for such a high boost.

Alibaba Shares Slump After Run Up

“Sell first and ask questions later” captures the nature of this sell-off best, observes Neo Wang, lead China macro analyst at Evercore ISI. “The memo is a laundry list of everything Trump wants to do. It’s more about getting some leverage and bargaining power in negotiating with China.”

On a different note, Alibaba has committed to spending in excess of 380 billion yuan or $53 billion on AI infrastructure over the next three years. If achieved, it would put Alibaba among top spenders on AI infrastructure in China.

Evercore's Wang also pointed out the “contest [that] is seemingly underway between Trump and Beijing over who has a bigger say over Chinese equity performance,” remarking that the contest has turned into a Trump v Beijing scenario.

Alibaba has grown more than 50% this year and, alongside Chinese expansion, so has the Nasdaq Golden Dragon China Index, which has nearly increased by 12% this year, despite the selloff on monday.