China is expected to leave its benchmark interest rates unchanged on Tuesday, a Reuters poll showed.
The move likely comes after policymakers shocked global markets by cutting key interest rates in July.
Chinese tech stocks led by Alibaba Group Holding Limited (NYSE: BABA), PDD Holdings Inc (NASDAQ:PDD), Baidu, Inc (NASDAQ:BIDU), JD.com, Inc (NASDAQ:JD), Bilibili Inc (NASDAQ:BILI) Electric vehicle stocks, including NIO Inc (NYSE:NIO) and Li Auto Inc (NASDAQ:LI) are trading lower on Tuesday.
Lenders’ shrinking interest margins remain the critical constraint deterring commercial banks despite the need for further stimulus measures to support a fragile recovery, experts say.
Chinese companies are struggling with a tough domestic economy. Alibaba, the e-commerce giant also seen as a benchmark for the national economy, missed consensus estimates for the first quarter and its profit fell 29%. The company reported revenue of $33.47 billion in the first quarter of fiscal 2024, up 4%, below analysts’ consensus of $34.81 billion.
At the same time, a report says China is looking to lend billions of dollars to tech startups and other small businesses using their intellectual property as collateral.
Total new intellectual property-backed financing loans jumped 57% in the first six months of 2024 year-on-year to 419.9 billion Chinese yuan ($58.5 billion), after growing 75% to 854 billion Chinese yuan in 2023, the Financial Times cited China’s National Intellectual Property Administration as saying.
Price Actions: BABA stock fell 2.04% to $82.20 at last check Tuesday. PDD is down 1.44% to $148.83, BIDU is down 1.53% to $88.80.
Photo via Shutterstock
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This article, “What’s Happening With Alibaba and Other Chinese Stocks on Tuesday?” was originally published on Benzinga.com
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