Alibaba Stock Falls. Treasury Yields Aren’t Just a U.S. Problem

Alibaba’s American depositary receipts have fallen 27% this year so far coming into Friday’s session. (Photo by ADEK BERRY/AFP via Getty Images)

Key Points

• Alibaba and other Chinese tech stocks fell on Friday as Hong Kong’s Hang Seng Index dropped 2.6% amid elevated U.S. Treasury yields.
• The Hang Seng Index experienced its worst one-day performance in more than six months on Friday.
• Chinese traders sold off tech stocks following a surge in the 10-year U.S. Treasury yield to above 5.3%, its highest level in 24 years.

Alibaba stock and many other Chinese tech names dropped on Friday as Hong Kong’s benchmark index was slammed amid elevated U.S. Treasury yields.

Any investors still wondering how the increase in bond yields may be impacting markets and stocks outside the U.S. just got the answer. Hong Kong’s Hang Seng Index fell 2.6% in Friday trading, seeing its worst one-day performance in more than six months.

Alibaba’s American depositary receipts were down 1.5% in premarket trading on Friday, bucking a broad rise in futures tracking the S&P 500, Nasdaq, and other U.S. stocks.

Likewise, JD.com and Baidu —two other widely traded Chinese tech ADRs—were both down near 1% in the premarket.

The Barron’s Daily

A morning briefing on what you need to know in the day ahead, including exclusive commentary from Barron’s and MarketWatch writers.

Email addressSubscribe

I agree to the Terms of Use, Privacy Notice and Cookie Notice.

I would like to receive updates and special offers from Dow Jones and affiliates.

Chinese traders have sold off tech stocks amid a surge in U.S. Treasury yields over the last month. The yield on the benchmark 10-year Treasury rose at its fastest pace in a century in the third quarter, with yields jumping from around 4.6% to above 5.3%, the highest level in 24 years, from late August through September.

Higher Treasury yields aren’t just a problem for the American stock market. The 10-year note is a global benchmark for borrowing costs, and when yields surge, bonds both become more attractive and reduce the present value of future predicted earnings underpinning stock valuations. For tech stocks, which typically trade at extended valuations due to expectations of high growth in the future, higher yields pinch harder.

Hong Kong—and Alibaba—are catching up with the pain, and really feeling it. While the S&P 500 is flat over the last month, the Hang Seng is down 5.3%, with Friday’s rout counting for much of the action.

Write to Jack Denton at jack.denton@barrons.com

Copyright ©2026 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8