BABA and JD are falling after China's NDRC Chair failed to show new economic stimulus measures
U.S.-listed shares of China-based e-commerce platforms Alibaba Group Holding Ltd (NYSE:BABA) and JD.Com Inc (NASDAQ:JD) are both lower Tuesday, as Chinese markets return to trading after the Golden Week holiday. Stocks in the region are underperforming after China's National Development and Reform Commission (NDRC) Chair Zheng Shanjie pledged actions to bolster the country's domestic economy, but stopped short of revealing any new economic stimulus plans.
At last glance, Alibaba stock is 7.2% lower at $109.12. Today's pullback puts shares below their Oct. 7, nearly 22-month high of $117.82 and at risk of falling beneath their ascending 10-day moving average. Despite this dip, BABA still remains 41.7% higher year to date.
JD.com stock's intraday losses are a little more subdued, with the equity last seen 6.5% lower at $44.04. The security is set to topple from its highest perch since February 2023, though its 10-day trendline is keeping the pullback in check near the $160 area. So far in 2024, JD is up 45%.
Options traders are targeting both equities at a higher-than-usual clip. For BABA, 120,000 calls and 62,000 puts have crossed the tape -- 2 times the average intraday volume -- and the most activity is taking place at the weekly 10/11 125-strike call. JD has so far seen 58,000 calls and 15,000 puts traded, which is also double the amount typically seen at the point and the weekly 10/11 50-strike call is seeing the most action.