$5.9 Billion Sell-Off Hits Tencent, Alibaba, and Xiaomi as Chinese Investors Pull Back

Mainland Chinese investors pulled back from three of Hong Kong’s most-watched tech stocks in June, unloading a combined 46.4 billion Hong Kong dollars ($5.9 billion) worth of shares in Tencent (TCEHY), Alibaba (BABA), and Xiaomi (XIACF) through the Stock Connect trading links. It was the second straight month of net selling in these names, according to Bloomberg data.

_{Hedge Fund Ownership in Tencent Drops Sharply Despite Stock Recovery}

The Broader Picture Tells a Different Story

The timing matters. Shares of TCEHY and BABA have been sliding since April, with Alibaba shares experiencing a more significant decline of 12% since April 2. According to Union Bancaire Privée, the move was partly driven by profit-taking and partly by a lack of fresh catalysts. For Tencent, this means pressure to revive growth beyond gaming and advertising.

At the same time, Alibaba faces persistent questions about cloud spin-offs and warnings of overheating in areas such as data center buildouts. Both companies are still working to regain investor confidence after years of regulatory pressure and weak earnings momentum.

Xiaomi, meanwhile, attracted attention with its first EV launch, but the stock is not immune to volatility, especially if sales fail to scale. A large share sale earlier this year also added pressure. The sell-off stands in contrast to the broader picture. Overall, mainland capital inflows into Hong Kong equities have been strong in 2025, totaling $90 billion and helping lift the market 21% in the first half.

Using TipRanks’ Comparison Tool, we’ve compared the three companies appearing in the article. This enables investors to gain a broader perspective on each stock and the industry as a whole.

Bottom line

Mainland investors may be rotating out of big tech to lock in gains or reassess risk, but long-term investors will want to keep an eye on upcoming earnings and product catalysts before making a call.