Alibaba Group Holding Limited BABA stock is trading lower Tuesday as China released fresh data highlighting a weak economy and deepening property-sector woes.
Industrial output grew 3.7% in July year-on-year, down from 4.4% in June. Retail sales also rose slower last month, SCMP cites the National Bureau of Statistics.
China’s central bank cut the interest rate on its one-year medium-term lending facility (MLF) loans to 2.5%, down from 2.65% on Tuesday, injecting 410 billion yuan of additional liquidity.
Gary Ng, a senior economist at Natixis in Hong Kong, acknowledged that the recent liquidity problems in the property and finance sectors are triggering fear of contagion risks that diluted the impact of the rate cut in the mind of the investors.
Michael Burry’s Scion Asset Management exited its stakes in Alibaba and JD.com Inc JD in the second quarter, months after doubling down on them.
The two Chinese firms comprised 20% of its portfolio and were its top two equity holdings at the end of March.
Chinese ETFs, including IShares China Large-Cap ETF FXI, KraneShares Trust KraneShares CSI China Internet ETF KWEB, are trading lower Tuesday following the macro data release.
Price Action: BABA shares traded lower by 0.55% at $92.95 premarket on the last check Tuesday.
© 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.
