2021-09-16 • Updated
Nearly one year later, Beijing started to concern about Alipay, which combines a digital payments platform with other traditional financial products such as loans, wealth management, and insurance. On September 13, Beijing reported that it will force the Ant Group, a subsidiary of Alibaba, to abandon the Alipay payment service and create a separate lending application. The new project will be partially owned by the government.
Alipay is currently used by over a billion people. Service revenue makes up a huge chunk of Ant Group's profits. In addition, ten percent of all consumer loans in the country were disbursed through the application last year.
Alibaba stock fell by 8% as the price reached the $153 level, following the Chinese government announcement. New rules will affect all online lenders in China. The central bank told industry participants that lending decisions should not be based on firms' data but data from a separate authorized company should be used to assess the creditworthiness of customers.
Alibaba, daily chart
Alibaba stock fell by more than 50% since its all-time high in October 2020. It’s a great drop, with was caused by the Chinese government pressure. However, it didn’t affect Alibaba’s financial and fundamental position. Alibaba is still one of the biggest online commerce companies.
That’s why we suppose that some pullback is expected to happen in Alibaba stock. According to the RSI, the price came in the oversold area. The RSI might form reversed "head with shoulders" pattern, which will be a strong bullish sign. If by the end of this week sellers do not push Alibaba under the $153 support level, we will see a pullback up to $177.
In the worst scenario, if $153 support gets broken through, Alibaba stock will dump to $130.
Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.
The previous year 2022, was undoubtedly tumultuous for the stock markets, with several stocks plummeting across multiple industries. Analysts have blamed the hard times on inflation, hawkish federal reserve policies, an impending global recession, and the ongoing crisis in Ukraine. This year, however, we're beginning to see some recovery in the stock markets. This article will find a few stocks worth buying this year.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.
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