Why Alibaba Stock Price is Down 9% Today By

© Reuters. Why Alibaba (BABA) Stock Price is Down 9% Today

Alibaba (NYSE:BABA) stock price is down over 9% today after gaining nearly 25% last week.

US-listed Chinese stocks like Alibaba, JD.com (NASDAQ:JD), and NetEase (NASDAQ:NTES) are all down today after Chinese banks left the loan prime rate unchanged. Pinduoduo (NASDAQ:PDD) is also down 4.5% after missing Q4 revenue targets.

Investors hoped for a reduction in banks reserve requirement ratio, which would signal fresh monetary support.

However, Becky Liu, head of China macro strategy at Standard Chartered (OTC:SCBFF) Plc in Hong Kong, sees the RRR cut in the short future.

We should continue watch out for possible RRR cut in the near future, following a strong signal at Liu Hes meeting on pro- growth measures, including more effective monetary policy and a slowdown in M2 and credit growth in February, Liu said in a client note.

By Senad Karaahmetovic

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