Alibaba Group Holding Limited BABA stock is trading lower on Monday in line with the broader indexes IShares China Large-Cap ETF FXI and KraneShares Trust KraneShares CSI China Internet ETF KWEB.
The selloff reflects concerns over China's property woes after China Evergrande Group, the world's most indebted developer, canceled creditor meetings in a setback to its debt restructuring plans, SCMP reports. Poorer-than-expected sales led to the cancellation.
According to China Galaxy Securities, the property sector alone accounted for 6.1% of China's economy in 2022, and industries linked to the real estate market can contribute to about a quarter of the economy.
Meanwhile, China ditched the live broadcast of some esports matchups at the Hangzhou Asian Games amid concerns about internet addiction.
China urged its video platforms, including Tencent Holdings Ltd TCEHY and Huya Inc HUYA, to stream only the semifinals and finals for multiplayer games like Honor of Kings and League of Legends.
The move marks the country's monitoring of the video gaming industry since its crackdown.
In 2023, Alibaba and Tencent collaborated to promote their flagship brands in a rare collaboration, renewing their focus on online shopping and esports.
China has eased its years-long crackdown on the video gaming industry and has promoted esports ahead of the coming Asian Games.
Price Action: BABA shares traded lower by 2.56% at $86.04 premarket on the last check Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
