China stock market dynamics
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After the e-commerce group announced its quarterly results, JD.com led the rebound of Chinese technology stocks, showing strong revenue and new user growth, ignoring Beijing’s regulatory crackdown on the industry.
After Cathy Wood (Cathie Wood) went public, JD’s share price rose 13% in Hong Kong trading on Tuesday Ark Investment Management It is disclosed that it bought shares of this e-commerce company after the release of the financial report.
The share prices of other Chinese technology companies that have withstood regulatory shocks have also risen in recent weeks. Internet conglomerates Tencent Alibaba and Alibaba rose 6.7% and 6% respectively. The Hang Seng Technology Index of Chinese technology stocks rose 5.5%.
JD.com said on Monday that its second-quarter revenue increased by more than 26% year-on-year to RMB 253.8 billion (US$39.2 billion), exceeding analyst expectations. The company also added a record 32 million users during this period, bringing its total user base to more than 531 million. The number of its users increased by 27.4% year-on-year.
“We believe that the regulatory goals are conducive to JD’s long-term business growth. So far, our business has maintained steady growth while working on better compliance policies,” said Xu Lei, CEO of JD Retail, in a conference call with analysts. Express.
After Beijing’s suppression, Ark has been rapidly selling Chinese technology stocks, including JD.com, and the company disclosed that it has repurchased 164,889 shares of the e-commerce group.
Beijing is targeting the technology industry, from education to e-commerce companies, has Erased billions Value companies including Jack Ma’s e-commerce group Alibaba and ride-hailing business Didi Chuxing.
JD.com was fined RMB 500,000 for pricing violations in December. Since its high in February, its share price has fallen by more than 36%.
Alibaba’s stock price has fallen by nearly 40% this year, and the group was fined US$2.8 billion in April for anti-competitive behavior, a record high.In November last year, Chinese regulators cancelled the US$37 billion initial public offering plan of its fintech subsidiary Ant Group. Several rounds of rectification Measures for the next few months.
JD.com’s net profit fell from 16.4 billion a year ago to slightly less than 750 million yuan, which the company attributed to higher marketing expenses.
JD’s executives claimed the new regulations, such as Prohibition of forcing suppliers Selling their products on only one platform actually helped the e-commerce group and stimulated the influx of new suppliers to its platform.
“We believe that these policies are not intended to restrict… The Internet and related industries,” Xu said, “but to create a fair and orderly environment and promote the long-term sustainable development of these industries.”
Supplementary report by Hudson Lockett in Hong Kong
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