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 (NYSE:BABA), PDD Holdings Inc (NASDAQ:PDD), Baidu, Inc (NASDAQ:BIDU), JD.com, Inc (NASDAQ:JD), Bilibili Inc (NASDAQ:BILI) Electric vehicle stocks, including NIO Inc (NYSE:NIO) and Li Auto Inc (NASDAQ: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.
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This article What's Going On With Alibaba And Other Chinese Stocks On Tuesday? originally appeared on Benzinga.com
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