Alibaba and WuXi AppTec decline in Hong Kong after addition to US blacklist

June 9, 2026 - 11:55

Shares of Alibaba and WuXi AppTec dropped sharply in Hong Kong trading on Wednesday, following the U.S. government's decision to add the two Chinese companies to a trade blacklist. The designation, which restricts these firms from receiving American technology and components without special licenses, has reignited concerns over the deepening rift between the world's two largest economies.

Alibaba's stock fell more than 4% in early trading, while WuXi AppTec, a major contract research organization, saw its shares tumble by over 6%. The declines come as investors already grapple with a volatile macro environment. Markets are now bracing for a potential tightening of monetary policy by the Federal Reserve, which could further pressure growth stocks. At the same time, the so-called "AI trade" that had buoyed tech shares in recent months appears to be unwinding, adding to the selling pressure.

The blacklist addition is seen as a direct blow to Alibaba's cloud computing and AI ambitions, as the company relies on U.S.-made chips for its data centers. For WuXi AppTec, the restrictions threaten its ability to source laboratory equipment and reagents from American suppliers. Analysts warn that the move could accelerate the decoupling of supply chains, forcing Chinese firms to rely more heavily on domestic alternatives.

The broader Hang Seng Index also slid, reflecting the market's jitters over escalating trade tensions and the uncertain path of U.S. interest rates.