LATEST: Alibaba, Baidu, BYD included in Pentagon Military List; China exports surge on AI demand
🔴Overnight, the US added Chinese companies including Alibaba, Baidu and BYD to their list of companies that the US administration believes are aiding Beijing's military (Reuters)
According to Bloomberg Intelligence, the inclusion of the companies is poised to curtail their ability to expand overseas, particularly in the US, though the development is unlikely to affect near-term earnings
🌪Nevertheless, the latest inclusion signals an escalation in geopolitical tensions that will weigh on sentiment for China's largest listed technology companies
The latest announcement comes less than a month after President Donald Trump met China's Xi Jinping on a visit to Beijing, where the two leaders maintained a delicate trade war truce (Reuters)
Alibaba is trading 0.8% lower to HKD 117.90, Baidu up 0.3% to HKD 116.40 while BYD is 0.6% higher to HKD 88.60 as of 1128AM this morning
📢Meanwhile, China announced an export surge of 19% in the month of May, which is the most in 3 months and higher than economists' estimates of a 15% increase
The jump is led by demand for AI hardware, which offset disruptions from the war in Iran
Bloomberg believes that the latest export data complicates China’s economic policymaking, as a large portion of the economy is still suffering from anemic consumer demand, even as some factories in AI-related fields prosper
The Hang Seng Index June futures is trading 0.2% lower to 24,528 as of 1134AM
Investors who foresee volatility in the above-mentioned stocks and indices may wish to consider using warrants which require a smaller capital outlay compared to the underlying shares, and which would move in greater magnitude to the shares based on their effective gearing levels
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Modify on 2026-06-09 15:58
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