Alibaba, Baidu among Chinese stocks seeing red amid skepticism over Beijing’s stimulus package

Alibaba (NYSE:BABA), and Baidu (NASDAQ:BIDU) were among Chinese stocks that fell on Tuesday following concerns over the scale of stimulus being provided by Beijing.

The Hang Seng Index closed about 4% lower, while the CSI 300 Index dipped about 3% on Tuesday. The KraneShares CSI China Internet ETF (KWEB) has slipped about 4% premarket in the U.S.

Shares of Alibaba fell about 4%, JD.com (JD) -6%, Chinese internet search giant Baidu -3%, online entertainment platform Bilibili (BILI) -6%, and PDD (PDD), which operates shopping platform Pinduoduo in China, -4%, were among stocks that fell premarket on Tuesday on the U.S. stock exchanges.

Meanwhile, in Hong Kong on Tuesday, Alibaba declined -5%, Baidu fell 6%, Bilibili closed -7%, JD. com -5%, Tencent (OTCPK:TCEHY) (OTCPK:TCTZF) -4%, and shopping platform Meituan had tumbled -7%.

China has unveiled hundreds of billions of dollars in supportive measures for the economy and markets, but investors are waiting for fiscal steps to rejuvenate consumer spending. This mismatch between expectations and actions has increased volatility in Chinese stock markets, with big surges in expectations of breakthrough policies and large selloffs when announcements fall short.

In the last week of September, Chinese stocks had soared after Beijing announced measures to boost the world’s second-largest economy.