While Chinese e-commerce giant Alibaba has seen its fortunes waver, with its quarterly earnings dropping behind expectations, its competition in the same segment, JD.com, has seen its prospects brighten over the recent past.
JD.com Shares Zoom
Touted by some as the Amazon of China, the company, along with others, released its quarterly data for the recently concluded quarter. The company’s balance sheet came out on top, beating estimates.
The company saw a whopping 92 per cent year-on-year jump in quarterly net income. The company accrued a net income of USD 1.7 billion. In addition, the company’s net revenue also rose by 1.2 per cent, compared to the corresponding quarter last year.
The company shares listed in Hong Kong have also chimed into the euphoria.
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The entity, headquartered in Beijing, saw a steady rise in its shares from the beginning of the day’s trade on Friday, August 16. The share prices jumped by over 8 per cent. At the time of writing, JD.com Inc. shares had hopped by 8.91 per cent or HKD 8.85, taking the overall value of the shares to HKD 108.20.
In fact, just over the past 6 months alone, the company’s shares rose by 13.00 per cent in value.
In the ever-competitive e-commerce market, JD.com is taking on the likes of Alibaba. These companies have in fact indulged in a price war, offering extensive discounts to gain a greater market share.
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China’s Economic Downturn
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These developments have transpired at a time when the larger Chinese economic recovery after the slump has been hit by a roadblock. The second-largest economy in the world, after a period of slowdown that lasted for more than a quarter, hopped back to some normalcy.
However, the recent data on the country’s economic progress poured cold water over this development, as weak consumption and diminishing purchasing power continued to drag the economy, despite its efforts to find a way out of the slowdown through increasing manufacturing.