Alibaba, NIO, Other Chinese Stocks On Watch Following Weak Economic Data: What To Know
US-listed shares of Chinese stocks, including Alibaba Group Holding Limited (NYSE:BABA) and PDD Holdings, Inc. (NASDAQ:PDD), are trading slightly lower Monday following weak economic data released over the weekend.
The Details:
Data released on Saturday showed factory output, consumption and investment in China all slowed more than anticipated, while the jobless rate unexpectedly rose to a six-month high. Home prices also fell at the fastest pace in ten years, increasing the likelihood of the world's second-largest economy falling into a deflationary spiral.
Credit data released last week showed private confidence remained weak despite a string of interest-rate cuts, and the People's Bank of China last week indicated it will prepare additional stimulus and policies to revive the economy.
Mainland China markets will be closed through Wednesday for the Mid-Autumn festival holiday, though Hong Kong markets were open and closed slightly higher Monday after a choppy session.
Read Next: Why Temu Parent PDD Holdings’ Stock Is Down
What Else: Last Friday, the Biden administration announced significant tariff hikes on Chinese goods, including a 100% duty on electric vehicles, 50% on solar cells, and 25% on steel, aluminum, EV batteries, and key minerals. The increased tariffs are set to take effect on Sept. 27, according to the U.S. Trade Representative (USTR).
Shares of Chinese EV companies, including NIO, Inc. (NYSE:NIO) and Li Auto, Inc. (NASDAQ:LI), are trading lower on both increased tariffs and the weekend's grim economic data out of China. Temu parent-company, PDD Holdings, is also trading lower after the White House on Friday announced new measures to tackle the abuse of the de minimis exemption by Chinese e-commerce platforms.
BABA, PDD, NIO, LI Price Action: According to Benzinga Pro, US-listed Alibaba Group shares are down 1.5% at $83.42, PDD Holdings shares are down 0.93% at $94.11, Nio shares are down 2.22% at $5.42 and Li Auto shares are trading 1.78% lower at $18.78 at the time of publication Monday.
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