China May Counter Trump With Weaker Yuan. It Isn't Helping Alibaba.
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Alibaba and JD.com experienced a decline in their U.S.-traded American depositary receipts as China considers weakening the yuan to stimulate its economy.
December 11, 2024 | 1:00 pm
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Alibaba's U.S.-traded ADRs fell as China considers weakening the yuan to stimulate its economy, which may not benefit Alibaba in the short term.
A weaker yuan could make Alibaba's products more expensive in dollar terms, potentially reducing demand. This is likely why Alibaba's ADRs fell.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
JD.com's U.S.-traded ADRs also declined as China considers a weaker yuan, which may not immediately benefit the company.
Similar to Alibaba, a weaker yuan could make JD.com's products more expensive in dollar terms, affecting demand and causing ADRs to fall.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80