Chinese e-commerce giants like Alibaba Group Holding Ltd BABA and JD.Com Inc JD came under heavy fire from a Chinese state newspaper, which chastised the firms for their “worship of turnover.”
What Happened: China’s state-run Securities Daily, one of the four major securities newspapers in the country, decried the “traffic and sales” war that dominates the annual Singles' Day shopping festival. The report was first noted on Reuters.
The newspaper decried the malpractices such as unauthorized sending of text messages and false evaluations caused by the pressure of transaction volumes in the name of “sale value worship.”
The e-commerce giants that came under fire include Jack Ma-led Alibaba, JD.com, Meituan MPNGY, Pinduoduo Inc PDD, and Tencent Holdings Limited TCEHY.
See Also: How To Buy Alibaba (BABA) Stock
Why It Matters: Singles' Day this year generated $84.5 billion for Alibaba through the 11-day campaign, as per a company statement. Last year, it had raked in $74.1 billion for the retail giant.
Rival JD.com’s Singles' Day cash pot swelled to $48.6 billion across the platforms it owns.
The event was marred by the Chinese government’s crackdown on large tech companies, which acted as a dampener on the mood.
Importantly, the shopping festival ran alongside China’s ruling Communist Party's sixth plenary session of the Central Committee or the sixth plenum — a four-day meet, which cemented President Xi Jinping’s hold over power for the foreseeable future.
See Also: China President Xi Jinping Personally Ordered Halt Of Jack Ma's Ant IPO: WSJ
The Securities Daily piece urged the transformation of Singles' Day or Double 11 from a marketing-oriented event to a technology-oriented one, pointing to Amazon.com, Inc AMZN founder Jeff Bezos and Tesla Inc TSLA CEO Elon Musk’s progress related to space.
Price Action: At press time, Alibaba shares traded 0.92% lower at HKD 161.60 in Hong Kong, while JD.Com shares traded 5.04% higher at HKD 329.20.
On Thursday in New York, Alibaba shares closed 2.37% higher at $167.85 in the regular session, while JD shares closed 8.31% higher at $84.20.
Read Next: Alibaba Rival JD Plans International Expansion In Challenge To Amazon: What You Need To Know
Photo: Courtesy of Alibaba
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