China and Hong Kong stocks fell sharply on Monday, led by technology shares, after Alibabas $10.2-billion share placement revived concerns over AI spending, shareholder dilution and the returns on heavy capital expenditure.

The Hong Kong placement, priced at a discount, highlights the rising capital demands of the global AI race as Alibaba’s spending pressures profit and cash flow

SHANGHAI, Aug 24 : Hong Kong-listed shares of Alibaba are set to open 8 per cent lower on Monday after the Chinese e-commerce and cloud computing giant launched a $10.2 billion…