Alibaba Group Holding Ltd BABA shares are trading lower Monday after Chinese factory and retail sales data missed estimates, which has caused concerns of an economic slowdown. China’s central bank cut key rates following the data.
Total retail sales of consumer goods jumped 2.7% year-over-year in July, according to the National Bureau of Statistics. Sales were down 0.4% from the prior month, which saw growth of 3.1% year-over-year, and came in well below expectations. Industrial production was up 3.8% and fixed asset investment jumped 5.7%, but both numbers also came in below expectations.
In response to the worse-than-expected data, China’s central bank cut one-year and seven-day lending rates by 10 basis points, according to a Bloomberg report.
“The rate cut shows the entire economy is in trouble,” ING Groep NV’s Iris Pang reportedly said.
Alibaba operates China’s online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer).
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BABA Price Action: Alibaba has a 52-week high of $138.70 and a 52-week low of $73.28.
The stock was down 2.04% at $92.85 at press time, according to Benzinga Pro.
Photo: courtesy of Alibaba.
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