Chinese stocks are falling hard in today’s trading session after re-elected President Xi’s speech indicated that the country will focus on political ideology instead of economic growth and cooperation.
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Nio (NIO) stock has fallen over 19%, and Alibaba (BABA) stock has dropped by almost 15%. Another popular Chinese stock, JD.com (JD), also lost approximately 15% while Pinduoduo (PDD) plunged over 28%.
What is the Issue with Alibaba Stock?
BABA stock has already dropped 48% year-to-date, showing the company’s weakest growth ever. The lagging Chinese economy has taken effect on this former powerhouse.
Nevertheless, analysts have continued to maintain a positive outlook on Alibaba stock, giving it 11 Buy ratings in the past three months, implying an upside of 133%. It remains to be seen how today’s events might impact the analysts’ thoughts about BABA.
