China cuts interest rates to stimulate economy, benefiting Chinese stocks like Alibaba, trading higher.

From Benzinga: 2024-07-22 06:13:39

China has lowered key interest rates to stimulate its economy amidst weak growth, deflation, and a property crisis. Chinese stocks like Alibaba, PDD, JD.Com, Baidu, and Bilibili are trading higher. The PBOC cut the seven-day reverse repo rate to 1.7% and reduced the one-year loan prime rate to 3.35%.

In a move to boost economic activity, China has also lowered the five-year LPR to 3.85% and adjusted its lending programs. This includes reducing collateral requirements for medium-term lending facility loans. Chinese sovereign bond yields fell post-rate cuts, with 30-year treasury futures rising by approximately 0.3% on Monday.

Separate reports suggest Nvidia is developing a new AI chip for China to meet U.S. export restrictions, benefitting stocks like Alibaba and Baidu. Alibaba faces challenges with a 22% stock drop in the last 12 months, canceled IPOs, and intense e-commerce competition. Baidu, JD.Com, and Bilibili also saw stock declines.

BABA shares are trading higher by 1.66% in the premarket session on Monday. This news comes amidst setbacks for Alibaba, including an AI expert departure and regulatory pressures. While keeping up with current events, remember that this content was partially generated using AI tools and reviewed by Benzinga editors.



Read more at Benzinga: What’s Going On With Alibaba And Other Chinese Stocks On Monday? – Alibaba Gr Hldgs (NYSE:BABA)