Alibaba Group Holding Limited BABA shares are trading lower amid reports of China vowing more support for private-sector businesses to help revive the lackluster economy.
China looks to optimize a stable, fair, transparent, and predictable development environment for the private sector and fully unleash its vitality and potential, the SCMP cites the State Council and the Central Committee of the Communist Party.
As expected on Thursday, China left its benchmark lending rates intact, following a hold of policy rates earlier this month.
The one-year loan prime rate was steady at 3.55%, while the five-year LPR was unchanged at 4.2%, the Wall Street Journal cites the People’s Bank of China. Lower interest rates enable easier credit availability, making borrowing easier for businesses.
Meanwhile, Alibaba injected $845 million into Lazada, its online retail business in Southeast Asia, facing intensifying competition from Sea Ltd SE and Amazon.com Inc AMZN.
The fresh capital brings the total that Alibaba has invested in the arm to several billion dollars since it gained control over the business in 2016, Bloomberg reports.
Lazada is part of the international online shopping unit that Alibaba plans to list in the U.S. as it decided to split Alibaba into six parts to spur the growth of its various businesses.
Price Action: BABA shares traded lower by 0.31% at $91.80 premarket on the last check Thursday.
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