Alibaba Group Holding Ltd (NYSE:BABA) shares are trading lower Wednesday as COVID-19 cases surge in Guangzhou and other Chinese cities.
According to a Reuters report, COVID-19 cases are rising quickly in global manufacturing hub Guangzhou. The report indicates that the region is becoming China’s latest COVID-19 epicenter.
New locally transmitted infections jumped to 7,475 nationwide as of Nov. 7, up from 5,496 the day before, per China’s health authority. The new infection numbers are the highest in China since May 1.
“We are seeing a game between rising voices for loosening controls and rapid spreading of COVID cases,” Nie Wen, a Shanghai-based economist at Hwabao Trust, reportedly said.
The economist also reportedly downgraded his fourth-quarter economic growth outlook to approximately 3.5% from a prior range of 4% to 4.5%.
The spike in cases weighed on stocks in Hong Kong on Wednesday, with the benchmark Hang Seng declining by more than 1%.
Related Link: Alibaba, Nio Fall: Hong Kong Stocks Weaken As China COVID-19 Cases Rise, US Midterm Results Eyed
Alibaba operates China’s online marketplaces, including Taobao (consumer-to-consumer) and Tmall (business-to-consumer).
BABA Price Action: Alibaba has a 52-week high of $138.70 and a 52-week low of $58.01.
The stock was down 3.89% at $65.48 at time of publication, according to Benzinga Pro.
Photo: courtesy of Alibaba.
