Alibaba and WuXi AppTec fall after US blacklist designation

On Tuesday, shares of Alibaba Group Holding and WuXi AppTec fell in Hong Kong after the US government added them, along with several other Chinese firms, to a blacklist due to suspected military associations. Alibaba's stock decreased by 0.3% to HK$118.50, while WuXi AppTec saw a significant drop of 5.5%, reaching HK$114.60. In contrast, other companies on the list, such as Nio and Baidu, experienced gains. The Hang Seng Index declined by 0.2%. In Shanghai, WuXi AppTec's shares plummeted by 7.1% to 89.06 yuan. The Pentagon indicated that these companies were identified based on alleged connections to Chinese state entities and military-related programs, impacting various sectors including EVs, AI, and biotech. This designation complicates fundraising and access to US government contracts but does not impose immediate sanctions.