By Callum Keown

Alibaba, Baidu, JD.com and other popular Chinese stocks were falling early Monday after disappointing economic data and a warning from the country's leader Xi Jinping.

Soft data has often helped the stocks recently, taken as a sign that government stimulus measures are more likely. But the mood was very different this time.

Xi appeared to attack "reckless" growth and local government spending in comments made at an economic work conference in Beijing. "All planning must be based on facts, pursuing real and genuine growth without exaggeration, and promoting high-quality and sustainable development," he said, according to a report in China's People's Daily on Sunday.

"Those who are unrealistic, hasty, reckless, and haphazard in their efforts, will be held strictly accountable," he added.

Xi's remarks may suggest that government stimulus may not be quite so forthcoming in the months ahead. That's unfortunate, given that Monday's data highlighted the potential need for it.

Retail sales, industrial production and investment data all fell short of expectations in November. Retail sales grew 1.3%, down from 2.9% in October -- the weakest growth since 2022, while fixed asset investment year to date fell 2.6% year-over-year.

"With factory output growth slowing to a 15-month low, and retail sales posting their worst metric since the Chinese ended its zero-Covid restrictions, there is a clear need for the government to step in to lift economic prospects," Scope Markets analyst, Joshua Mahony, said.

However, he added that Xi's comments meant "those hoping for a silver bullet may be left waiting."

Hong Kong's Hang Seng Index fell 1.3%, while China's CSI 300 index fell 0.7%.

Alibaba's American depositary receipts fell 1.3% ahead of the open, while Baidu was down 2% and JD.com slipped 0.2%. Alibaba's ADRs are up 84% this year, heading into Monday's trading, but they've fallen 13% since the beginning of October.

Write to Callum Keown at callum.keown@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

December 15, 2025 06:51 ET (11:51 GMT)

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