US-Listed Chinese Stocks React To Underwhelming Consumption Data

U.S. listed Chinese stocks Alibaba Group Holding. BABA, JD.com, Inc. JD and Baidu, Inc. BIDU, NIO Inc. (NYSE: NIO), Li Auto Inc. (NASDAQ: LI), and XPeng Inc. (NYSE: XPEV) stocks are trading lower on Monday.

The data shows that China’s economic growth slowed in November. Key indicators such as retail sales and property investment underperformed expectations.

The National Bureau of Statistics (NBS) reported a 3% year-on-year increase in November retail sales, down from October’s 4.8% growth and missing economists’ estimates of 5.3%.

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Fixed-asset investment growth for the year through November rose by 3.3%, while property investment declined by 10.4%, reflecting persistent challenges in the real estate sector, SCMP reports.

NBS spokesperson Fu Linghui attributed the weaker retail sales to the early timing of China’s “Double 11” shopping festival, which shifted some spending to October as per SCMP.

However, Fu emphasized that combined sales figures for October and November showed more substantial growth compared to the third quarter.

Despite this, he acknowledged the need to stabilize employment and incomes to fully unleash domestic demand, citing an increasingly complex external environment and insufficient internal demand as ongoing challenges.

At China’s annual Central Economic Work Conference (CEWC) last week, leaders prioritized boosting consumption, enhancing investment efficiency, and expanding domestic demand as top economic goals for 2025.

Industrial production rose 5.4% year-on-year in November, slightly exceeding October’s 5.3% increase, while the urban unemployment rate remained steady at 5%.

Experts, including Ding Shuang of Standard Chartered, told the SCMP that retail sales have returned to a subdued pace, suggesting that broader policy measures are needed to boost consumer confidence and stabilize key markets like property and stocks.

China’s economic outlook for 2025 faces external headwinds, including geopolitical tensions, semiconductor embargo and tariff threats from U.S. President-elect Donald Trump.

Price Actions: At the last check on Friday, BABA stock is down 1.80% to $86.24. JD is down 1.23%, BIDU is down 1.67%, LI is down 1.67%, and XPEV is down 0.81%.

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