Alibaba and other Chinese stocks continue to rise. A great risk is ignored.



and other Chinese tech stocks appear to have reversed a brutal two-year decline this month. Investors betting on a recovery may be ignoring the risk of China’s “zero Covid” policy and how much more these stocks could be hurt.


(ticker: BABA) lost nearly half of its value in 2021 as it found itself on the wrong side of regulators in both Beijing and Washington along with the rest of China’s tech sector. The picture shed little light in 2022, when China’s restrictive policies to contain Covid-19 led the company to its worst-ever revenue growth.

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