Cathie Wood’s ARK Invest has adjusted its China tech exposure, buying into Alibaba Group Holdings while trimming its position in Baidu. The trades were disclosed in daily updates for ARK’s flagship Innovation ETF (ARKK), reflecting a shift in the fund’s conviction towards the e-commerce giant over the search engine operator.
Alibaba shares have been under pressure in recent years amid regulatory crackdowns and a slowing domestic economy, but the company’s cloud and international commerce segments are showing signs of recovery. Baidu, meanwhile, has faced headwinds in its advertising revenue and slower-than-expected monetisation of its AI initiatives. ARK’s move suggests Wood sees better relative value in Alibaba’s broader ecosystem.
The FTSE 100 ended the session down 0.3% at 7,624.31, while the FTSE 250 slipped 0.1% to 19,112.45. London-listed Chinese depositary receipts, including Alibaba’s Hong Kong-listed shares, were broadly flat. UK investors with exposure to global tech ETFs or China-focused funds may see indirect effects from ARK’s repositioning, as it influences broader sentiment in the sector.
Analysts at Citi noted that Alibaba’s core commerce business is stabilising, while Baidu’s AI-driven growth remains unproven at scale. “Wood is known for high-conviction bets on disruptive innovation, and this trade suggests she sees Alibaba as the stronger platform for long-term growth in China,” said one analyst. However, they cautioned that Chinese tech stocks remain vulnerable to geopolitical tensions and regulatory shifts.
For UK pension holders and retail investors, the trade underscores the importance of diversification when investing in emerging markets. While ARK’s moves are watched by many as a bellwether for growth investing, individual decisions should be based on personal risk tolerance and financial goals. The broader context is that global funds are cautiously returning to Chinese equities after a prolonged downturn, but volatility remains high.
Source: ARK Invest daily trade disclosures