Alibaba and JD.com are competing for Hong Kong market share amidst China's stimulus plans. Baidu, PDD, NIO, Li Auto, XPeng, and ZEEKR are also affected.

Chinese tech stocks including majors like Alibaba and Tencent rallied this week, pushing them to highs not seen in more than a year.

HONG KONG: Hong Kong stocks sank more than three percent on profit-taking in Thursday’s morning session after rocketing more than 20 percent since China last week began unveiling a raft of economy-boosting stimulus measures. The Hang Seng Index sank 3.34 percent, or 749.39 points, to 21,694.34.

Southbound investors bought HK$12.1 billion (US$1.6 billion) worth of local shares on Monday, the biggest single-day total in more than six months, according to stock exchange data. That helped propel overall turnover in Hong Kong to HK$505.8 billion, a record high.

Chinese e-commerce juggernaut Alibaba Group Holding (NYSE:BABA) and rival JD.com, Inc (NASDAQ:JD) are aggressively fighting for market share in Hong Kong. The companies waived delivery fees for certain orders and boosted related services like local product returns in Hong Kong,

Hong Kong’s equity market surged to a 20-month high on Wednesday as the rally ignited by Beijing’s raft of stimulus measures continued to lift Chinese stocks.

Hong Kong stocks soared for a sixth day in a row, hitting a 22-month high as the China market frenzy rolled on, while BlackRock said more stimulus from Beijing could be coming. The Hang Seng Index jumped 4.