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What's Going On With Alibaba Stock Tuesday?
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What's Going On With Alibaba Stock Tuesday?
Oct 11, 2024 12:05 AM

Alibaba Group Holding Ltd. ( BABA ) shares are trading lower on Tuesday, among other U.S. listed Chinese stocks, after China’s National Development and Reform Commission (NDRC) announced disappointing stimulus measures.

What To Know: Investors anticipated the commission’s chairman Zheng Shanjie would release bold measures to boost the country’s economy during a press conference Tuesday. However, Zheng’s measures amounted to releasing a 100 billion yuan investment plan for 2025 by the end of this month and a separate 100 billion yuan for construction projects.

Following the underwhelming stimulus measures, China’s stock markets fell on Tuesday, cutting off gains. Hong Kong’s Hang Seng index closed 9.4% lower on Tuesday. In addition, the Shanghai Composite Index experienced significant fluctuations throughout the day, but despite the volatility, it ultimately closed with a 4.6% gain.

Alibaba ( BABA ) and other U.S. listed Chinese stocks are heavily owned by foreign investors who may be quick to react to market shifts. Other U.S. listed Chinese stocks effected by this shift include JD.Com Inc. ( JD ) and NIO Inc. ( NIO ) .

How To Buy Alibaba Shares

By now you're likely curious about how to participate in the market for Alibaba Gr Hldgs – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

See Also: US Stocks Poised To Bounce Back As Bond Yields Dip, Oil Prices Slide, PepsiCo Pulls Back: Set-up ‘Quite Positive’ For Equities, Says Economist

BABA Price Action: At the time of writing, Alibaba ( BABA ) shares are trading 7.07% lower at $109.21, according to data from Benzinga Pro.

Image: Photo via Shutterstock

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