What's Going On With Alibaba Stock Tuesday?

Alibaba Group Holding Ltd BABA stock is trading lower Tuesday in line with the broader index IShares China Large-Cap ETF FXI amid reports of Moody's revising its perspective on China's government credit ratings from stable to negative. 

This adjustment reflects growing international worries about the repercussions of increasing local government debt and the intensifying real estate downturn on the global scale, particularly affecting the world's second-biggest economy, Reuters reports.

After losing out to PDD Holdings Inc PDD as China's most valuable e-commerce company, the stock continues to exude jittery signs.

Meanwhile, Alibaba's logistics arm, Cainiao, has significantly contributed to China's remarkable achievement of delivering 120 billion parcels this year, setting a new record for the country. 

This milestone represents an 8.5% increase from the 110.6 billion parcels delivered in 2022, SCMP reports. 

The success of the parcel delivery sector is mainly due to China's extensive transport infrastructure, millions of couriers, and the adoption of advanced technologies by firms like J&T Global Express, which launched a $450 million IPO in Hong Kong, and Alibaba's Cainiao, which is also preparing for a listing.

Significantly, parcel shipping volume spiked in November, driven by the peak season and Singles' Day, China's largest shopping event. This parcel delivery growth reflects the expansion of China's e-commerce industry, which has been recovering post-pandemic.

Separate reports indicated that the Chinese e-commerce giant's key subsidiary, Alibaba (China) Network Technology, has recently shifted its equity stakes in seven listed companies to Hangzhou Haoyue Enterprise Management, a newly formed entity with a similar ownership structure. This move includes transferring stakes in companies like Focus Media, a media company, and YTO Express, a logistics firm, SCMP cites regulatory filings. 

The equity transfers involving companies like Red Star Macalline Group and Shanghai Lily & Beauty were announced starting Friday and continued through Monday, suggesting a coordinated effort by Alibaba. Alibaba (China) Network, established in 1999, still retains significant shares in other mainland companies, including a 10% stake in UTour Group. The involved companies are integral to Alibaba's ecosystem, with YTO Express notably serving as a primary courier for Alibaba's Taobao platform. 

Some equity transfers, such as the one involving Meinian Onehealth, indicate a potential financial loss for Alibaba (China) Network. 

Price Action: BABA shares traded lower by 1.08% at $72.24 on the last check Tuesday.