At the time of writing, both company’s stocks are showing signs of a rebound in Hong Kong.
The past week has been a mix of both a bullish run as well as a down-plunge for the duo of Alibaba Group Holding Ltd (HKG: 9988) and JD.com Inc (HKG: 9618) with respect to their stock activity on the Hong Kong Stock Exchange. According to a CNBC report, both Chinese e-commerce giants are arguably the biggest gainers in the Singles’ Day shopping event, with both companies beating their own previous records.
With an unusual twist to this year’s Single’s Day shopping event which spanned 11 days from the 1st of November to the 11th, Alibaba recorded a total of 498.2 billion yuan or $74.1 billion Gross Merchandise Value (GMV) for the 11 days, while JD.com carted away with 271.5 billion yuan or $40.97 billion. In the year-ago period, Alibaba’s GMV for the event was pegged at 268.4 billion yuan while that of JD.com came in at 204.4 billion yuan.
From Coinspeaker’s earlier report, the company’s earnings did not reflect a surge in stock price owing to the fact that Chinese authorities published a well defined Anti-competitive behavior in its overall market ecosystem. Investors feared this will impact more on tech giants including Alibaba and JD.com and as a result, Alibaba stock tanked by 8.26% on Wednesday, November 11, while JD.com suffered a 5.63% drop.
At the time of writing this report, however, both company’s stocks are showing signs of a rebound in Hong Kong with Alibaba currently up 1.85% and trading at 253.00 Hong Kong Dollar. JD.com is up 7.67% at 323.00 Hong Kong Dollar.
Alibaba, JD.com Drove Singles’ Day Sales with Specialized Focus
With the stock of Alibaba as well as JD.com showing signs of recovery from the anti-competitive scare, both firms will build on their targeted focuses that drove the sales figures during the Singles’ Day Shopping Event.
Top on the list of the focus was a boost on foreign brands as well as low tier cities in China. The COVID-19 pandemic has limited the pursuit of foreign brand shopping and both Alibaba and JD.com capitalized on the situation to provide Chinese consumers with in-demand foreign products.
According to CNBC, Alibaba noted that about 250,000 brands participated in the Singles Day event this year with about 31,000 foreign brands well represented. The United States was the top country selling to China by GMV, Alibaba said. The e-commerce giant revealed that US brands contributed as much as $5 billion to the total reported $74.1 billion GMV.
The focus on low tier Chinese cities have also been seen as a crucial component of retail growth for e-commerce companies. As Xiu Li, the CEO of JD retail told CNBC in an interview:
“Many brands have come to realize the huge size of the Chinese market, so they customize products for lower-tier cities by leveraging JD’s data and our supply chain capabilities.”
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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.