What's Going On With Alibaba Stock Thursday?

Belgium's intelligence service closely monitors the European logistics hub of Alibaba Group Holding Ltd BABA as concerns of potential espionage and data misuse linked to the Chinese retail giant. 

Alibaba's logistics subsidiary, Cainiao, has been observed as authorities work to uncover "possible espionage and/or interference activities" by Chinese entities, including Alibaba, the Financial Times reports.

The Chinese retail behemoth established its presence in Liège following a 2018 agreement with the Belgian government, marking a significant investment in Europe's fifth-largest cargo airport. 

The Belgian State Security Service (VSSE) has intensified its monitoring of the company's operations, focusing on software systems that gather sensitive economic data. 

A law enacted in July now enables the screening of foreign investments in critical infrastructure, reflecting a more cautious stance towards international collaborations, particularly with Chinese entities.

Belgium's trade deficit with China has expanded, and issues of customs fraud involving Chinese companies at Liège airport have compounded the challenges.

Separately, while Alibaba's Cainiao unit grapples with weak IPO sentiment in the country, the International Monetary Fund (IMF) expects China's economy to grow by a mere 2%, notably lower than the 5.2%, due to the impending crisis in the property sector, a decline in foreign direct investment, and structural economic issues. 

Moody's has shifted its outlook for China's property sector to "negative." Structural problems, international challenges, and internal regulatory policies, particularly in the tech sector, exacerbate the economic slowdown. 

Price Action: BABA shares traded lower by 0.75% at $83.45 premarket on the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.