What's Going On With Alibaba Stock Tuesday?

Alibaba Group Holding Limited BABA stock is trading lower Tuesday amid a contraction in China's official manufacturing purchasing managers' index (PMI) for a fourth month. 

The PMI surveys suggest that China's economic recovery continued to lose momentum in July, SCMP cites analysts.

Also Read: Alibaba's 2H Performance Expectations Bolstered by China's Economic Policies and International Commerce: Analyst

Analysts signal that the country is possibly heading for lost decades of stagnation like Japan.

In the middle of its landmark corporate restructuring, Alibaba has also invested in agriculture-related technology.

Founder Jack Ma has enhanced focus on a newly-established fishery and agriculture start-up in China called "1.8 Meters Marine Technology (Zhejiang) Co."

Ma-backed Hangzhou Dajingtou No. 22 Arts and Culture Co Ltd is the second largest shareholder of the company, with a stake of 10%.

The venture's business scope covers aquatic products, feeding, and processing.

The new venture, which also covers processing, wholesale, and retail sales of agriculture products and the development of offshore wind power systems, fits Ma's interest in the agriculture and food sector following his retirement from Alibaba.

Ma made several international trips to learn about sustainable food production in the past few years.

According to job postings, Alibaba's research institute, DAMO Academy, launched an initiative in the field of "smart breeding" and is hiring life scientists to help it develop China's seed industry.

Alibaba and its Chinese peers are also vulnerable to the U.S.'s potential sanctions on the semiconductor industry on top of the current, which encompasses artificial intelligence chips and technology.

U.S. chipmakers, including Nvidia Corp NVDA, known for its AI chips, have a sizable exposure to China.

Price Action: BABA shares traded lower by 1.50% at $100.63 premarket on the last check Tuesday.

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