Alibaba and JD.com stocks surge after successful 618 Shopping Festival in China

From Financial Modeling Prep: 2025-06-05 06:54:00

Shares of Alibaba and JD.com surged after strong results from China’s 618 Shopping Festival, driven by state subsidies. Sales of electronics and appliances saw triple-digit growth, with Alibaba reporting a 283% jump and JD.com a 380% increase. The festival is part of a government program to boost domestic consumption and stimulate the economy.

The success of the festival indicates a positive response from consumers to Beijing’s rebate program, offering up to 2,000 yuan per qualifying item. The policy has shifted consumer behavior and boosted spending on subsidy-backed categories, reflecting strategic government support for the initiative.

The 618 Shopping Festival, initiated by JD.com in 2010, has become China’s second-largest e-commerce event after Singles’ Day. It involves all major e-commerce players and is a significant indicator of consumer confidence in the Chinese market, closely monitored by global investors amid economic concerns.

The strong performance of Alibaba and JD.com during the festival bodes well for Chinese consumer confidence and could lead to better-than-expected Q2 earnings for both companies. The success of the festival demonstrates how policy-backed consumption can drive e-commerce growth in China, providing a positive outlook for the tech sector.



Read more at Financial Modeling Prep:: Alibaba and JD.com Rally as China’s 618 Shopping F…