Chinese Retail Sales Pickup In October: Here's What's Happening With Alibaba, JD And Pinduoduo Shares

Chinese retail sales grew by 4.8% year-on-year in October picking up from September’s 3.2% growth, as per the National Bureau of Statistics on Friday. That annual retail sales forecast exceeded the 3.8% growth precited by a Reuters poll.

What Happened: The robust growth in Chinese retail sales in October was fueled by the monetary stimulus measures that the People's Bank of China unveiled in the latter half of September as a last-ditch effort to revive the country's struggling economy.

The share price of the top three Chinese e-commerce players, Alibaba Group Holding Limited (NYSE:BABA), PDD Holdings (NASDAQ:PDD) and JD.com (NASDAQ:JD) were in red in Hong Kong on Friday.

Meanwhile, Alibaba Group Holding‘s American Depository Receipts (NYSE:BABA) have plunged by 11.90% over the last month, according to Benzinga Pro data. PDD Holdings (NASDAQ:PDD) and JD.com (NASDAQ:JD) ADRs have declined by 13.10% and 18.93%, respectively. The shares have underperformed their index, as the NYSE Composite rose by 0.28%, while the Nasdaq Composite advanced by 4.32% in the same period.

Also read: Gold Drops To A Two-Month Low As Investors Turn To Bitcoin After Trump’s Victory, But This Economist Remains Confident That ‘Gold Will Surge’

Why It Matters: The Chinese stimulus is aimed at stimulating spending and investment in an economy that's been suffering from weak demand and a cooling property market. The measures also include a stimulus package of around 1 trillion yuan, or more than $140 billion, in liquidity.

Read next: Apple’s Key Supplier Foxconn’s Gross Profit Hit 7 Year High In Q3, Aims To Expand AI Capabilities By Next Year

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