What’s Going On With Alibaba Stock Thursday? – Alibaba Group Holding (NYSE:BABA)
Alibaba Group Holding Limited’s BABA stock is trading higher Thursday as China signals an end to its regulatory overhaul on the tech sector and expressed efforts to restore national economic growth.
At the same time, the company continues to undertake initiatives to comply with government regulations while continuing its international expansion.
On Thursday, Alibaba’s Ele.me delivery platform inked collective wages and labor safety contracts with its staff. The contracts will apply to 3 million workers on the platform, Reuters cites China’s state-backed media.
Also Read: China Endorses Projects By Alibaba And Other Big Techs
Alibaba’s move marks its efforts to align with government regulations.
Alibaba had consolidated certain local consumer services segment operations to compete with Meituan MPNGF MPNGY and ByteDance Ltd-owned Douyin.
Alibaba’s local consumer services business segment includes food delivery unit Ele.me, online-to-offline integration service solution provider Taoxianda, Amap, and online travel platform Fliggy.
Recently, China voiced its desire to boost Big Tech by endorsing projects of Alibaba Group Holding Limited BABA, Tencent Holding Ltd TCEHY, and Meituan, signaling the end of its regulatory overhaul.
The National Development and Reform Commission (NDRC) applauded projects by ten leading internet giants and outlined the initial boundary of China’s “green-light projects,” where private internet giants can invest and receive government backing to boost the real economy and headline growth.
Separate reports indicated Alibaba’s logistics arm Cainiao International Express launched its distribution centers in Dallas and Chicago, taking their number in the U.S. to five.
Cainiao International can now deliver a parcel to its destination within ten days on average, five to six days at the earliest, more than 40% faster than before, YiCai reports.
Now it can sort nearly 90% of Cainiao’s international express parcels within hours, thanks to automatic assembly lines and warehouse sorting machines.
Price Action: BABA shares traded higher by 1.19% at $95.21 premarket on the last check Thursday.
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