What will happen to Chinese stocks Alibaba, NIO, XPeng and Li Auto on Tuesday? – Alibaba Gr Hldgs (NYSE:BABA), XPeng (NYSE:XPEV)

Barometer of the Chinese technology industry Alibaba Group Holding BABA The stock rose on Tuesday after China's central bank announced plans to cut banks' reserve requirement ratio (RRR) by 50 basis points, or half a percentage point.

The central bank will also cut the seven-day reverse repo rate to 1.5% from 1.7%.

Alibaba competitors Baidu, Inc BIDU, PDD Holdings Inc Traffic rulesAnd JD.com, Inc JD Their share prices also rose in premarket trading on Tuesday.

Beaten Chinese electric vehicle stocks, including NIO Inc. NIO, XPeng Inc. XPEV, Li Auto Inc. LI, and ZEEKR Intelligent Technology Holding CCalso rose in pre-market trading on Tuesday.

Read also: Alibaba partners with Nvidia to upgrade Chinese automakers’ electric vehicles: report

Chinese companies are struggling with a double burden of a weak domestic economy and geopolitical tensions with the United States, which is slowing their ambitions in the field of artificial intelligence.

Alibaba and its competitors have faced fierce domestic price wars in their e-commerce and cloud businesses as the U.S. restricted their access to sophisticated AI chips, slowing their growth momentum.

AI technology has played a critical role in modernizing hyperscaler companies, including in e-commerce, logistics and electric vehicles.

Last week, stocks benefited from the Federal Reserve's interest rate cut. The Federal Reserve cut the benchmark interest rate by 50 basis points, lowering the central bank's benchmark interest rate to 4.75 to 5 percent in an effort to stimulate demand. Analysts expect the cut to boost the growth of discretionary spending by American companies.

Investors can participate in Chinese stocks through iShares China Large-Cap ETF FXI and KraneShares Trust KraneShares CSI China Internet ETF KWEB.

Price promotions: At last check on Tuesday, BABA stock was up 6.25% at $95.72 in premarket trading, PDD was up 5.32% at $107.71, JD was up 8.53% at $32.30, BIDU was up 5.12% at $92.80, NIO was up 8.08%, XPEV was up 7.85%, LI was up 8.96% and ZK was up 6.74%.

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