Alibaba Group Holding Limited BABA and Chinese peer stocks are trading lower Thursday after a government report exhibited manufacturing in mainland China contracted for a third month in June, underlining concerns about the lack of significant policy stimulus.
Prices also weakened as prominent global central bankers said more tightening might be needed to contain inflation, SCMP reports.
Chinese ETFs, including IShares China Large-Cap ETF FXI and KraneShares Trust KraneShares CSI China Internet ETF KWEB, are trading lower by nearly 2%.
Alibaba, Baidu, Inc BIDU, and JD.Com, Inc JD traded lower by 2%-3%.
According to forecasts, China’s PMI Manufacturing Index likely stayed at 49 in June but little changed from 48.8 in May to 49.2 in April, signaling persistent weak demand from overseas. A level below 50 means a contraction in activity.
The stocks were down Wednesday amid reports of the U.S. intensifying its AI chip embargo on China.
Price Action: BABA shares traded lower by 1.76% at $83.09 on the last check Thursday.
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