What's Going On With Alibaba And Other Chinese Stocks On Tuesday?

China will likely leave benchmark lending interest rates unchanged on Tuesday as per a Reuters survey.

The move is likely after policymakers shocked the global markets by slashing key interest rates in July.

Chinese tech stocks led by Alibaba Group Holding Limited BABA, PDD Holdings Inc PDD, Baidu, Inc BIDU, JD.com, Inc JD, Bilibili Inc BILI Electric vehicle stocks, including NIO Inc NIO and Li Auto Inc LI, are trading lower Tuesday.

Shrinking interest margins at lenders remain the critical constraint discouraging commercial banks despite the need for more stimulus to bolster a fragile recovery, according to experts.

The Chinese companies are battling a challenging domestic economy, with e-commerce juggernaut Alibaba, also considered a benchmark for the domestic economy, missing the first-quarter consensus estimate and the profit plunging by 29%. The company reported fiscal first-quarter 2024 revenue of $33.47 billion, up by 4%, missing the analyst consensus of $34.81 billion.

Meanwhile, a report indicates China is looking to lend billions of dollars to technology start-ups and other small companies using their intellectual property as collateral. 

Total new intellectual property-pledged financing loans soared 57% in the first six months of 2024 year-on-year to 419.9 billion Chinese Yuan ($58.5 billion), after a 75% growth to 854 billion Chinese Yuan for 2023, the Financial Times cites China's National Intellectual Property Administration.

Price Actions: BABA stock traded lower by 2.04% at $82.20 at the last check on Tuesday. PDD is down 1.44% at $148.83, BIDU is down 1.53% at $88.80.

Photo via Shutterstock