Chinese tech industry barometer Alibaba Group Holding (NYSE:BABA) stock gained on Tuesday after China’s central bank announced plans to slash banks’ reserve requirement ratio (RRR) by 50 basis points or half a percentage point.

The central bank will also cut the seven-day reverse repurchase rate to 1.5% from 1.7%. 

Alibaba rivals Baidu, Inc (NASDAQ:BIDU), PDD Holdings Inc (NASDAQ:PDD), and JD.com, Inc (NASDAQ:JD) also noted an upward movement in their stock prices in Tuesday premarket trading.

Battered Chinese electric vehicle stocks, including NIO Inc. (NYSE:NIO), XPeng Inc. (NYSE:XPEV), Li Auto Inc. (NASDAQ:LI), and ZEEKR Intelligent Technology Holding (NYSE:ZK), were also up on Tuesday premarket.

Also Read: Alibaba Teams Up With Nvidia to Supercharge EVs for Chinese Automakers: Report

The Chinese companies have been battling the double whammy of a weak domestic economy and geopolitical tensions with the U.S., impairing their artificial intelligence technology ambitions.

Alibaba and its peers struggled with intense domestic price wars in their e-commerce and cloud businesses as the U.S. restricted their access to sophisticated AI chips, restricting their growth momentum.

AI technology has been pivotal in upgrading hyperscaler businesses, including e-commerce, logistics, electric vehicles, and more.

Last week, the stocks got a boost from the U.S. Fed rate cut. The U.S. Fed slashed the lending rate by 50 bps, lowering the central bank’s benchmark rate to 4.75%-5% to spur demand. Analysts expect the cut to drive growth in discretionary spending from U.S. companies.

Investors can gain exposure to Chinese stocks through iShares China Large-Cap ETF (NYSE:FXI) and KraneShares Trust KraneShares CSI China Internet ETF (NYSE:KWEB).

Price Actions: At the last check on Tuesday, BABA stock was up 6.25% at $95.72 premarket. PDD was up 5.32% at $107.71, JD was up 8.53% at $32.30, BIDU was up 5.12% at $92.80, NIO was up 8.08%, XPEV was up 7.85%, LI was up 8.96%, and ZK was up 6.74%.

Also Read:

• Chinese Stocks Defy Biden’s Auto Import Ban Concerns, Rally To 4-Month Highs As Central Bank Unexpectedly Slashes Interest Rates

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