• 13
  • 2
  • Favorite

Alibaba, JD.com, NIO Stocks Fall. Why New China Stimulus Fell Short

Dow Jones10-21

Chinese stocks with American depositary receipts were falling early Monday even after China’s central bank lowered interest rates.

Retailer Alibaba fell 2.5% in the premarket, and rival JD.com fell 1.5%. Bilibili, a video-sharing site, declined 1.17%, and electric-vehicle maker NIO fell 2.1%. The Hang Seng Index in Hong Kong fell 1.6% on Monday.

The moves follow fresh stimulus from the People’s Bank of China. The central bank for the world’s second-biggest economy lowered two key lending rates, designed to help the housing market and bolster consumer spending.

Chinese officials ignited a stock rally in September by announcing the start of a series of measures to bolster growth. The government is trying to hit a 5% growth target for the year—in the third quarter the pace was just 4.6%, the slowest in six quarters.

But the euphoria has faded somewhat since then as investors worried whether it will be enough. The reaction to the latest rate cuts suggest it’s still not, but there are likely more announcements to come. Should one be a big bazooka move beyond what’s already priced in it would likely move stocks and markets.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment2

  • Danielng
    ·10-21
    This article is useless - so the only argument it makes on stimmy not enough is coz the share prices dropped? Idiotic
    Reply
    Report
  • King19
    ·10-21
    Last chance to scoop up more before they take off...
    Reply
    Report
 
 
 
 

Most Discussed

 
 
 
 
 

7x24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email:uservice@ttm.financial