|Bid||31.90 x 900|
|Ask||31.91 x 1100|
|Day's range||31.51 - 32.13|
|52-week range||19.21 - 35.43|
|Beta (3Y monthly)||1.35|
|PE ratio (TTM)||217.41|
|Earnings date||14 Nov 2019|
|Forward dividend & yield||N/A (N/A)|
|1y target est||39.07|
(Bloomberg) -- An epic stock rally for China’s e-commerce upstart just faltered, clipping the fortune of its founder.Pinduoduo Inc. Chairman and Chief Executive Officer Colin Huang lost almost a quarter of his fortune as the company’s stock plummeted 23% on Wednesday, according to the Bloomberg Billionaires Index. His net worth tumbled to $16.3 billion, down $4.8 billion from a day earlier.PDD’s stock drop was the biggest since it held an initial public offering in July last year, reducing this year’s gain through Wednesday to a still-respectable 40%. The sell-off was triggered by the company’s worse-than-expected quarterly results. Sales more than doubled to 7.51 billion yuan ($1.1 billion) for the three months ended September, but fell short of the average analyst projection of 7.65 billion yuan. Net loss widened to 2.3 billion yuan from 1.1 billion yuan a year earlier.The disappointing results came after arch-rivals Alibaba Group Holding Ltd. and JD.com Inc. chipped away at the Chinese e-commerce upstart’s dominant position in smaller cities.Founded by Huang in 2015, PDD has carved a niche with social commerce that encourages making purchases with others. But the Shanghai-based startup is now working to shake off its reputation for hawking cheap products, just as Alibaba and JD delve deeper into PDD’s base of smaller cities. In September, JD rolled out a group-buying app which, like PDD, entices purchases with generous discounts.What Bloomberg Intelligence says:Despite heavy marketing expenses, the company’s marketplace model can sustain high gross margin and should lead to profit as revenue scales up.Vey-Sern Ling and Tiffany Tam, analystsClick here for the research.PDD said in a statement that many brands and small merchants must “choose one of two” platforms to be listed, without naming rivals. “Forced exclusivity has a material impact on Pinduoduo, we had to row upstream against the pressure,” it said.Sales and marketing expenses surged 114% to 6.9 billion yuan, helping China’s No. 3 shopping app to add 64 million new active users during the quarter. Its founder signaled that the company can afford to buy growth.“When there is opportunity, we should spend our money aggressively. We shouldn’t put our money into the piggy bank,” Huang told analysts on a conference call.To contact the reporters on this story: Venus Feng in Hong Kong at firstname.lastname@example.org;Zheping Huang in Hong Kong at email@example.comTo contact the editors responsible for this story: Pierre Paulden at firstname.lastname@example.org, Colum Murphy, David ScheerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
As you might know, JD.com, Inc. (NASDAQ:JD) recently reported its third-quarter numbers. Sales of CN¥135b surpassed...
Henry Kissinger, with decades of experience of dealing with China, gives his assessment on the two countries' relationship.
BEIJING, Nov. 15, 2019 -- JD.com, Inc. (NASDAQ: JD), China’s leading technology driven e-commerce company and retail infrastructure service provider, today announced its.
(Bloomberg) -- Alibaba Group Holding Ltd. logged more than 268 billion yuan ($38.3 billion) of purchases during its Singles’ Day bonanza, exceeding last year’s record haul after a 24-hour shopping marathon.An estimated half-billion shoppers from China to Russia and Argentina swarmed the e-commerce giant’s sites to scoop up everything from Apple Inc. and Xiaomi Corp. gadgets to Ugandan mangoes. The company again hosted a televised entertainment revue in Shanghai to run alongside the bargain-hunting, this time enlisting Taylor Swift and Asian pop icon G.E.M. to pump up sales.The world’s largest shopping event has become an annual ritual for Asia’s largest company, part showcase of commercialism and part publicity blitz. Also referred to as “Double 11” because it falls on Nov. 11, it’s closely watched by investors keen to gauge how willing Chinese consumers are to spend as economic growth threatens to slip below 6%.Tensions between Washington and Beijing continue to fuel uncertainty and roil global commerce. Among China’s largest corporations, Alibaba is expected to better ride out the storm, thanks to booming online consumption in the world’s No. 2 economy. On Sunday, Alvin Liu, a Tmall general manager, said Alibaba doesn’t expect any impact on its cross-border import business from an ongoing trade spat.“Alibaba will probably be the one that will be able to circumvent and come out from the trade war in better shape” versus Baidu Inc. and Tencent Holdings Ltd., Richard Wong, head of ICT for the Asia Pacific at Frost & Sullivan, told Bloomberg Television. “The current sentiment and confidence in terms of spending is still relatively high.”While Alibaba and its rivals routinely trumpet record sums in the event’s aftermath, it’s unclear how much Nov. 11 sales actually will contribute to the bottom line given the enormous discounting involved. A good result however could bolster Alibaba’s effort to raise as much as $15 billion in a landmark Hong Kong share sale this month, according to people familiar with the matter.Singles’ Day emerged as a uniquely Chinese antidote to the sentimentality surrounding Valentine’s Day. Emerging on college campuses across the country, it takes its name from the way the date is written numerically as 11/11, which resembles “bare branches,” a local expression for the unattached.It’s now become an excuse for people to splurge. Last year, sales at Alibaba climbed 27% to 213.5 billion yuan, equivalent to $30.7 billion at the time. This time, purchases grew 26% from the year earlier. More merchandise is sold online over the 24-hour period than during the five-day U.S. holiday buying spree that begins on Thanksgiving and ends on Cyber Monday.Alibaba’s U.S. traded shares were down 1.9% Monday to $183.70 at 11:25 a.m. in New York.Alibaba saw 100 million new users join the shopping festival this year, according to Jiang Fan, president of the company’s e-commerce marketplaces Taobao and Tmall.“This is the power of expanding into less developed regions,” he said. “We hope this event can help more factories and farmers.”Read more: Alibaba Said to Seek Up to $15 Billion in Hong Kong ListingIt’s Time for Alibaba to Slay Jack Ma’s Monster: Tim CulpanBut the company faced stiff competition this year from smaller platforms including JD.com Inc. and Pinduoduo Inc. -- the aggressively expanding upstart that’s encroaching on the market leaders’ turf. They vied for the wallets of Chinese shoppers particularly in relatively untapped rural areas. All employ heavy discounting and hard-sell tactics in the run-up to and during the 24 hours in a bid to best the previous year’s record.“Overall, we think this year will likely see a more competitive Double 11 period,” Ella Ji, an analyst at China Renaissance Holdings Ltd., said in a report. “We anticipate each platform will spend more on subsidies.”Daniel Zhang, who took over as Alibaba chairman from billionaire Jack Ma in September, pioneered the show in its present form in 2015. The Singles’ Day impresario passes the baton this year to Fan, a potential successor to Zhang himself.“Over the years, we’ve seen consumers become more diverse and younger. Each generation of consumers needs their own peers to serve them,” Zhang said in a post on Alibaba’s blog. “I think this young team is the future.”The 2019 edition came with slight twists to the formula. Alibaba, stung by criticism it harmed the environment by shipping an estimated 1 billion packages in a single day -- has enjoined its logistics arm Cainiao to set up recycling centers at 75,000 locations. It says it will also work with courier companies to pick up used boxes and wrapping.An expansion into Southeast Asia and less-developed areas in China plus newer services -- such as transactions on food delivery site Ele.me, grocery store chain Hema and travel service Fliggy -- bolstered the total. The company also brought in livestreamers including Kim Kardashian to appeal to younger buyers.Other aspects remained the same. Singles’ Day has always been an opportunity for Alibaba to test the limits of its cloud computing, delivery and payments systems. Leaving little to chance, Alibaba sent teams across the nation ahead of Nov. 11 to help myriad outlets prepare for the festival. Some 200,000 brands had been expected to participate in 2019‘s edition of the festival.“Singles’ Day is becoming popular outside of China, especially in the ASEAN region,” said Patrick Winter, Ernst & Young Asia Pacific managing partner. “You’re also seeing how it’s growing in smaller cities in China.”(Updates with new user number in tenth paragraph.)To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Molly Schuetz, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Investors seeking to tap Singles' Day benefits in a diversified way should focus on the following four ETFs that provide substantial exposure to the Chinese e-commerce segment.
JD.com, Inc. (JD) is at a 52-week high, but can investors hope for more gains in the future? We take a look at the company's fundamentals for clues.
BEIJING, Oct. 30, 2019 -- JD.com, Inc. (NASDAQ: JD), China’s leading technology driven e-commerce company and retail infrastructure service provider, today announced that it.
(Bloomberg) -- China’s technology ambitions are at the epicenter of the nation’s trade dispute with the U.S. Not that you’d know it from the bond market.Credit investors who bought Chinese tech debt at the start of the year are sitting on a 13% return, more than any other sector, Bank of America Merrill Lynch indexes show. Industry titans from JD.com, Inc. to Tencent Holdings Ltd. and Sunny Optical Technology Group Co. are in favor with $213 billion wealth manager Pictet Wealth Management. With the trade war hanging over the global economy and tech in particular, this may seem counterintuitive. But President Donald Trump’s efforts to rein in Huawei Technologies Co. and force supply chain changes have little impact on large parts of the industry that are focused on domestic demand. Plus, the revenues of tech manufacturers that don’t export to the U.S. aren’t directly hit by Trump’s tariffs.“There are no Asian countries that are completely immune to the U.S.-China trade conflict, but we do see some resilient Chinese corporates,” said Thomas Wu, head of Asia fixed income at Pictet, highlighting Sunny Optical, JD.com and Tencent. “The tech-internet sector has been quite defensive in terms of how it’s faring in the trade war.”While the trade tariffs have seen some component makers like Sunny Optical look to set up factories outside China, their revenues are still largely dependent on customer demand, according to Bloomberg Intelligence analyst Charles Shum.Domestic consumers accounted for 84% of Sunny Optical’s revenue last year, while exports to the U.S. contributed only 2.1%, according to data compiled by Bloomberg. For online retailer JD.com and internet giant Tencent, domestic demand accounted for at least 97% of their revenue in 2018.Even Huawei bonds aren’t faring too badly. The tech giant’s parent Huawei Investment & Holding Co. saw a strong onshore yuan bond debut last week, spurred in part by nationalistic buying. Its dollar bonds due 2026 and 2027 have returned at least 18% this year, beating the 10% from a Bloomberg Barclays index for emerging markets in Asia. Local demand accounted for more than half of the firm’s revenue last year.U.S. regulators are set to vote next month on a proposal to prevent government subsidies from being spent on gear from Huawei. The Trump administration in May moved to restrict U.S. companies from doing business with the Chinese tech giant, but it has since issued temporary licenses allowing some sales to the company.For the best returns from investing in Chinese corporate bonds, “technology selections need to be internally focused rather than exposed to what’s going on outside,” said Leo Hu, senior portfolio manager for hard-currency emerging market debt at NN Investment Partners Ltd., who doesn’t expect the U.S. to lower the tariffs on Chinese goods in the near term.Firms focused on certain parts of technology as well as the consumer sector will be the “rising stars” for China credit, according to Hu. The country’s large population and established industrial ecosystem will support its tech sector, he said.(Corrects name of fund in second paragraph of story initially published Oct. 29)To contact the reporters on this story: Rebecca Choong Wilkins in Hong Kong at email@example.com;Annie Lee in Hong Kong at firstname.lastname@example.orgTo contact the editors responsible for this story: Neha D'silva at email@example.com, Magdalene FungFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Alibaba stock is up 7% in the last month as the Chinese e-commerce firm prepares to release its September quarter earnings results on Friday, November 1. So is it time to buy BABA stock?
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will...
(Bloomberg) -- ESR Cayman Ltd., a logistics real estate developer, is set to raise $1.6 billion as it’s planning to price its initial public offering at the middle of a marketed range, people familiar with the matter said.The company and shareholders including Warburg Pincus LLC and Goldman Sachs Investments Holdings (Asia) Ltd. could price the shares at HK$16.80 apiece, the people said. The shares were marketed at HK$16.20 to HK$17.40 each.An upsize option to sell an additional 15% of shares will be exercised in full, said the people, asking not to be identified because the information is private. That would increase the total number of shares sold to about 752 million, based on Bloomberg calculations.The pricing marks a turnaround for ESR, which in June postponed an attempt to raise as much as $1.24 billion, citing unfavorable market conditions. Budweiser Brewing Company APAC Ltd. pulled its first IPO try in July, further denting investor confidence. At $1.6 billion, ESR’s offering is set to trail only Budweiser’s $5.8 billion share sale, according to data compiled by Bloomberg.A representative for ESR declined to comment.ESR’s offering attracted the Ontario Municipal Employees Retirement System as a cornerstone investor, with the Canadian pension fund agreeing to subscribe for a total of about $585 million of stock, terms for the deal showed. APG Asset Management, General Electric Pension Trust and JD.com Inc.’s Jingdong Logistics Group Co. are among the seven holders selling shares in the IPO.ESR’s listing will boost Hong Kong’s IPO volume, which has slumped 43% to $18.7 billion this year, data compiled by Bloomberg show. Despite ongoing anti-government protests and the U.S.-China trade war, the city has been enjoying a good market window, with two billion-dollar-plus listings up at least 10% from their offer price and a number of small-cap IPOs popping on their debuts.Read: Hong Kong Money Is Fleeing? Not Around Here: Nisha GopalanESR plans to use the IPO proceeds to repay debt, develop logistics properties, and make co-investments in the funds and investment vehicles it manages, according to the prospectus.ESR’s shares begin trading in Hong Kong on Nov. 1. Deutsche Bank AG and CLSA Ltd. are joint sponsors for the offering.To contact the reporters on this story: Julia Fioretti in Hong Kong at firstname.lastname@example.org;Carol Zhong in Hong Kong at email@example.comTo contact the editors responsible for this story: Fion Li at firstname.lastname@example.org, Margo TowieFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.