U.S. eyes stricter regulations on selling graphics chips for artificial intelligence purposes and advanced chip-making equipment to Chinese companies. 

The rules could pose a significant deal breaker for China's AI ambitions as companies, including Alibaba and Baidu, Inc (NASDAQ: BIDU), remain aggressive in their AI endeavors.

Also, China's gross domestic product probably rose at an annual pace of 4.5% last quarter, slower than the 6.3% gain in the second quarter, SCMP reports.

On the positive front, Alibaba's Freshippo supermarket chain, affiliated grocery brand Hema Xiansheng, looks to transform approximately 350 offline stores into discount supermarkets by the Chinese New Year in 2024.

Price Action: BABA shares traded lower by 0.52% at $83.58 premarket on the last check Monday.