China stocks topped the list of losers on the coveted IBD 50 and MarketSurge Growth 250 Monday. China names were feeling pressure Monday after President Donald Trump signed a memo Friday to promote foreign investment while protecting America's national security interests, "particularly from threats posed by foreign adversaries like the People's Republic of China."
Futu Holdings, Atour Lifestyle Holdings and Alibaba were just a few China-based names getting hit hard Monday. Some China stocks have rallied since late January on news of DeepSeek, the Chinese startup that boasted artificial intelligence technology at a fraction of the cost of other developers.
These China Stocks Are IBD 50 Losers
Futu Holdings was a big loser on the IBD 50 Monday as shares plummeted around 13% in heavy volume before trimming losses to around 9%. The drop follows Friday's breakout attempt from the 130.50 buy point of a cup-without-handle base, but the breakout quickly faded and shares closed at the low of the day.
Futu stock has fallen around 18% from its buy point, triggering the 7% loss rule and a round trip. The online broker undercut its 21-day exponential moving average, according to MarketSurge chart analysis. Its relative strength line reversed sharply lower.
Atour Lifestyle Holdings trimmed larger morning losses to around 5.3% Monday. The hotel operator stock is back below the 29.79 buy point of a consolidation pattern after topping the buy zone last week. Shares tested the 21-day line, finding support.
MarketSurge 250 Big Losers Include Alibaba, Recent IPO
Recent initial public offering China stock Pony.ai plunged nearly 20% in heavy trading and was the biggest loser on the MarketSurge Growth 250. Monday's drop followed Friday 32% jump when it reached a record high and blew past the 20% profit zone of its first base with a 16.32 entry.
Friday's jump came on news it introduced a paid robotaxi service in Beijing to a major airport and railway station. The company is not yet profitable. Shares started trading on Nov. 27 with an offer price of $13 per share.
Alibaba sold off more than 10% Monday and looks to be ending a steep climb from its cup-with-handle breakout in early February. Shares topped the profit zone in mid-February signaling it was time to take some money off the table.
Even with Monday's drop, shares have gained around 52% so far this year. On Monday, the online marketplace said it would spend around $52 billion on cloud-computing and AI infrastructure over the next three years.
GDS Holdings tumbled 12% in heavy action following Friday's 7.7% drop. The data center stock got a downgrade from Jefferies to a hold from a buy rating Monday.
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These China Names On The 250 Get Clobbered
Online entertainment name Bilibili retreated around 10%, while cloud computing stock Kingsoft Cloud sank 9.6% after hitting an all-time high Thursday.
Tencent Music Entertainment gave back around 9% and Ascentage Pharma skidded around 8.6% after Friday's record high.
JD.com fell around 7.4% in heavy volume. Shares fell back below a resistance level of around 42 within a cup base with an official 47.82 buy point.
Lastly, another big loser was Taiwan-based stock Gorilla Technology Group as it plummeted around 18% after rising Friday to a high not seen since July 2023.
Follow Kimberley Koenig for more stock market news on X, the platform formerly known as Twitter, @IBD_KKoenig.
