What's Going On With Alibaba Stock Today?

Alibaba Group Holding Limited BABA stock is trading lower in line with KraneShares Trust KraneShares CSI China Internet ETF KWEB and IShares China Large-Cap ETF FXI after China cut its one-year benchmark lending rate on Monday to stimulate credit demand, but surprised markets by keeping the five-year rate unchanged.

China lowered the one-year loan prime rate (LPR) by ten basis points to 3.45% from 3.55% previously while leaving the five-year LPR intact at 4.20%.

Also Read: Alibaba's Q1 Report: 14% Revenue Growth, Strong Performance in Commerce, Cloud, and Entertainment

"Probably China limited the size and scope of rate cuts because they are concerned about downward pressure on the yuan," Reuters cites Masayuki Kichikawa of Sumitomo Mitsui DS Asset Management.

Alibaba is ramping up hiring efforts within its domestic e-commerce sectors, Taobao and Tmall. This move signals a potential period of growth for China's Big Tech entities after facing a lengthy stretch of contraction.

In an ambitious recruitment spree, Alibaba will likely bring in over 2,000 fresh graduates to occupy entry-level roles spanning engineering, algorithms, and data analytics stationed in major cities like Hangzhou, Beijing, Shanghai, Nanjing, and Guangzhou, SCMP reports.

Alibaba's broader strategy envisions adding 15,000 professionals to its workforce this year. Among them, 3,000 will be newly minted graduates. This proactive approach comes after a noticeable trimming of its employee base. By the end of June, the tech titan's workforce stood at 228,675 - reflecting a drop of 6,541 since March.

Youth unemployment rates in China surged to unprecedented levels in June. This trend pressurizes the government to invigorate youth employment. 

However, in a surprising move, the National Bureau of Statistics opted to halt the release of July's youth unemployment figures, fueling concerns about a deteriorating job market.

Price Action: BABA shares traded lower by 0.25% at $87.81 premarket on the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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