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Pinduoduo shares rose by more than one-fifth after the Chinese e-commerce group announced on Tuesday that it would donate US$1.5 billion of future earnings to charity after announcing its first quarterly profit since its initial public offering three years ago.
Pinduoduo pledged to contribute to the development of agriculture before the donation reaches 10 billion yuan, becoming the latest Chinese technology group to venture into philanthropy with a high profile because the industry is under a full regulatory blow.
Tencent announced last week that it will allocate 50 billion yuan for the “Common Prosperity Plan”. Promote “common prosperity” Facing increasing social inequality.
“For a long time, agriculture has been the core of Pinduoduo’s mission and strategy. [initiative] We announced today that this is a way for us to deepen our support for agricultural modernization and rural revitalization. ” Chen Lei, Chairman and CEO of Pinduoduo.
“Agricultural investment pays off for everyone, because agriculture is the link between food security and quality, public health and environmental sustainability,” he added.
Pinduoduo’s American Depositary Receipts rose 22% and closed at just under $100, but the company warned that its first-quarter earnings do not mean future sustainable profits.
Analysts also doubt whether the latest results represent Turning point for the company. Citigroup lowered its target price for the company’s stock from US$168 to US$140, while analysts said that “amidst a huge base and fierce competition” the user growth is expected to slow.
Chinese technology stocks Be beaten Through extensive repression in recent months, Erase hundreds of billions The market value of the stocks of some of the country’s largest companies has fallen in dollars.
Chinese technology stocks fell in Hong Kong trading on Wednesday Strong rise for two consecutive daysThe Hang Seng Technology Index, which tracks some of China’s largest offshore listed technology groups including Alibaba, Tencent and Meituan, rose 2.5% on Monday and fell slightly by 0.1% after rising more than 7% on Tuesday.
Alibaba’s stock price was listed in Hong Kong on Wednesday, and the stock price fell 2%, which has fallen 30% this year, while Tencent’s stock price has fallen about 16%.Pinduoduo shares Has fallen In 2021 it is 44%.
New Oriental Education’s share price has fallen by about 84% after Beijing this year Prohibition of family education industry Due to earnings, its stock price rose by $0.45 on Tuesday, which was reflected in a rise of more than a quarter in New York trading.
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