Chinese technology stocks experienced a significant decline on Mar. 25, 2025. The Hang Seng Tech Index fell by 3.8%, marking a roughly 9% drop since its peak on Mar. 18, 2025.

Xiaomi Corp’s shares decreased by over 6% following a US$5.5 billion upsized share placement. This raised concerns about market liquidity. Steven Leung, executive director at UOB Kay Hian Hong Kong Ltd, noted that Xiaomi and BYD Co. have collectively raised about US$11 billion in March, contributing to investor worries.

Other major Chinese tech companies also faced declines. Alibaba Group Holding Ltd’s stock dropped more than 3% after its chairman pointed out potential risks of a bubble in data center construction. Sunny Optical Technology Group saw a sharper decline, with shares falling nearly 9% after warning of market restructuring due to a surplus in capacity.

This recent volatility in Chinese tech stocks comes after a strong rally earlier in the year. Investors are becoming increasingly cautious about corporate developments in the sector.

Recent Xiaomi developments