China’s Economic Moves Fail to Impress Big Stocks as Alibaba, NIO Fall. Here’s Why.
(AFP via Getty Images)
China’s central bank cut two key interest rates on Sunday, which was enough to help the Shanghai Composite Index to an incremental increase on Monday.
Hong Kong’s Hang Seng index, on the other hand, fell 1.6%. Big companies that have American depositary receipts were also falling–Alibaba was down 1.9% in the premarket, and electric vehicle maker NIO was falling 1.7%.
One reason might be that quarter-point interest-rate reductions still feel like fine-tuning rather than bazooka that will get the world’s second-biggest economy rolling again. The big question is whether Chinese authorities have the stomach to provide enough stimulus to make a big difference.
