What's Going On With Alibaba Stock Wednesday?

Alibaba Group Holding Limited BABA stock is trading lower Wednesday as it gave up the gains associated with reports over Beijing's stimulus plan.

The Chinese government plans to issue an additional 1 trillion yuan (approximately $137 billion) in sovereign debt during the fourth quarter.

John Lee Ka-chiu, the city's chief executive, proposed a cut in stamp duty on local stock transactions.

China proposes issuing special government bonds in the fourth quarter, which the local governments will utilize to fund disaster relief and reconstruction efforts. The move will likely widen China's fiscal deficit to about 3.8% from 3%, SCMP reports.

The fiscal boost followed recent measures to boost confidence in the stock market, especially when the country is reeling under macroeconomic weakness fueled by the U.S.'s additional semiconductor sanctions.

The U.S. Government informed Nvidia Corp NVDA that the fresh restrictions applied to products having a "total processing performance" of 4800 or more and designed or marketed for data centers are effective immediately, impacting shipments of Nvidia's A100, A800, H100, H800, and L40S products. It will be a big blow to the semiconductor aspirations of Alibaba.

Price Action: BABA shares traded lower by 1.60% at $81.54 premarket on the last check Wednesday.