What's Going On With Alibaba Stock Thursday?

Alibaba Group Holding Limited BABA stock is trading lower Thursday in line with the broader indexes IShares MSCI China ETF MCHI and KraneShares Trust KraneShares CSI China Internet ETF KWEB.

The selloff followed the Federal Reserve's hawkish pause in its tightening cycle, as officials indicated another hike this year may be appropriate and projected fewer rate cuts in 2024. The yuan weakened further against the U.S. dollar, SCMP reports.

China's housing market crisis, a liquidity squeeze crippling the nation's most prominent developers, and Beijing's drip-feed approach to stimulus have prompted global funds to dump their holdings.

The Fed kept its target rate intact at 5.25% - 5.5% on Wednesday in New York, the second pause since its "lift-off" in March 2022.

The Hong Kong Monetary Authority kept its base rate unchanged at 5.75%.

The yuan weakened after the Fed decision as U.S. government bond yields jumped and the dollar strengthened.

In March, Alibaba shocked the market by sharing plans to reorganize its businesses into six independently run entities: Cloud Intelligence Group, e-commerce under Taobao-Tmall, Cainiao's smart logistics operations, Local Services Group, Global Digital Business Group, and the Digital Media and Entertainment Group.

Each business unit will have to face the tests of market forces themselves, including the possibility of seeking their initial public offerings (IPOs).

Price Action: BABA shares traded lower by 2.18% at $83.87 premarket on the last check Thursday.