By Callum Keown

Alibaba, NIO, and other U.S.-listed Chinese stocks were falling inn premarket trading Thursday after Beijing set its lowest economic growth target in decades.

China lowered its gross domestic product target to between 4.5% and 5% in 2026, down from "around 5%" last year. The target is "proactive and pragmatic," according to an official cited by state-owned media Xinhua News Agency. It reflects domestic conditions and a "shift in the external environment."

It's the lowest official target since at least the 1990s, and if China's economy grew by less than 5% it would be its slowest growth outside of the Covid-19 pandemic years in three decades, The Wall Street Journal reported.

Alibaba's American depositary receipts fell 2.5% ahead of the open after slipping 1.7% in the previous session. The shares have fallen 9% in 2026 through Wednesday's close of trading and have declined 7.5% so far this week. Hong Kong's Hang Seng index has dropped 5% this week amid the Iran War; China is the primary buyer of Iran oil.

Electric-vehicle makers Li Auto and NIO also fell around 2%, while JD.com declined 1.2% after reporting earnings.

But some stocks were rising. Baidu edged higher, along with Temu parent PDD. China's Premier Li Qiang outlined boosting domestic demand as the country's top policy priority in 2026.

"With the new target, there appears to be a tolerance for slower growth, which should give policymakers more flexibility to pursue quality growth, a priority in recent years," ING's chief economist for Greater China, Lynn Song, said in a note Thursday.

However, he added that steady fiscal targets are "signaling a reluctance to lean too heavily on fresh stimulus to bolster growth."

Slower growth without a strong stimulus push would be a disappointing outlook for investors, which may explain the weakness Thursday.

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

March 05, 2026 06:06 ET (11:06 GMT)

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