What's Going On With Alibaba Stock Wednesday?

Alibaba Group Holding Limited BABA stock is trading lower Wednesday in line with the broader indexes IShares China Large-Cap ETF FXI and KraneShares Trust KraneShares CSI China Internet ETF KWEB.

The stocks got some respite Tuesday from PDD Holdings Inc’s PDD upbeat second-quarter results before a selloff.

On Sunday, China announced a reduction in the levy charged on stock trades, restrictions on share sales by top stakeholders at some firms, and lower deposit ratios for margin financing to arrest the market’s decline.

The China Securities Regulatory Commission agreed to slow the pace of initial public offerings, Bloomberg reports.

Data on Sunday showed that the decline in China’s industrial profits continued in July.

Meanwhile, the leading Chinese chip design firms, including Alibaba, have formed a patent protection alliance for RISC-V and open-source chip ecosystem to beat the U.S. tech sanctions.

RISC-V is an open-standard instruction set architecture that helps chip developers to configure and customize their designs.

Nine chip companies – including Alibaba’s chip unit T-Head and Shanghai-listed VeriSilicon Holdings – agreed to ally, barring members from suing each other over patent infringement.

The alliance also includes RISC-V intellectual property (IP) vendor Nuclei System Technology and Baidu, Inc BIDU-backed chip maker StarFive.

Members of the alliance will share patents and license them to third parties.

Also, Alibaba Cloud launched a digital transformation lab in Japan. The lab, which mainly targets sectors including retail and logistics, aims to co-develop innovative industrial solutions with participating members in Japan.

Alibaba’s cloud unit and its technology partners will provide resources like cloud computing, AI services, and industrial know-how for program members to upgrade their services.

Initial lab members include Japan’s real estate company, Tokyu Land Corporation, and apparel company TSI Holdings. 

Companies, including Japan’s game studio JP Games and livestreaming firm LaLa Station from South Korea, will join as technology partners.

Price Action: BABA shares traded lower by 1.86% at $92.98 premarket on the last check Wednesday.