What's Going On With US Listed Chinese Firms Alibaba, JD, Baidu Stocks On Thursday?

US-listed Chinese stocks Alibaba Group Holding BABA, JD.com, Inc JD, and Baidu, Inc BIDU are trading lower Thursday.

The down move follows the International Monetary Fund (IMF) lowering China’s 2024 economic growth forecast to 4.8%, down from the previous 5% estimate, due to declining consumer confidence and ongoing property market challenges.

The IMF cautioned that further drops in home prices could erode consumer confidence, reduce household spending, and weaken domestic demand.

Several international financial institutions have raised their 2024 economic growth forecasts for China following recent stimulus measures introduced in late September, predicting that Beijing will meet its around 5% target, SCMP reports.

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UBS, Moody’s Analytics, Goldman Sachs, and Nomura now project China’s gross domestic product growth to reach as high as 4.95% in 2024, despite challenges like weak retail sales and property prices.

Last week, China reported 4.6% third-quarter growth, the lowest since mid-2022, but raised its year-to-date growth to 4.8%.

President Xi Jinping has issued several economic-focused directives in the past week as attention turns to Beijing’s stimulus efforts to stabilize China’s economy, SCMP reports.

On Sunday, Xi’s message was delivered during a ceremony in Tianjin, marking the 40th anniversary of China’s economic development zones.

Last week, during his tours of Fujian and Anhui, Xi appeared to gather firsthand insights into the state of the economy and the implementation of recent policies.

His push for development comes as China’s economy faces domestic challenges and global uncertainties, raising concerns about meeting the annual growth target.

Price Actions: BABA stock is down 1.43% at $96.60 premarket at last check Thursday. JD is down 1,52% and BIDU is down 1.07%.

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