Commodity Channel Index
|Bid||61.50 x 1000|
|Ask||61.50 x 1100|
|Day's Range||60.81 - 61.92|
|52 Week Range||25.77 - 62.42|
|Beta (5Y Monthly)||0.98|
|PE Ratio (TTM)||417.62|
|Earnings Date||Aug 11, 2020 - Aug 17, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||438.49|
(Bloomberg) -- Hangzhou Wahaha Group Co., one of China’s biggest drink makers, is weighing an initial public offering that could raise more than $1 billion, according to people with knowledge of the matter.A listing could come as soon as next year, the people said, asking not to be identified as the matter is private. The beverage company is working with an adviser on preparations for the share sale, and has been considering Hong Kong among potential listing venues though no final decision has been made, they said.Founded in 1987 by entrepreneur Zong Qinghou, Wahaha has grown into a food and beverage giant with products ranging from bottled water, yogurt drinks and juice to instant noodles. The company has 80 production bases and employs about 30,000 workers, according to its website. Its products are available in more than 30 countries including Canada, Singapore and the U.S., the website said.Wahaha, which literally means a “laughing child” in Chinese, has signaled its intention for a listing last year as competition in China’s food and beverage market intensified. A listing would be “the right choice” and provide Wahaha with more resources, Kelly Zong, the founder’s daughter and an executive at the company, said in an interview with the 21st Century Herald in 2019. She didn’t provide details on preparations and timing.The company joins fellow Hangzhou-based beverage firm Nongfu Spring Co. in seeking a first-time share offering. The bottled water company filed for its Hong Kong IPO in late April and plans to raise about $1 billion, people with knowledge of the matter told Bloomberg News earlier.Chinese companies have become the force behind a surge in share sales in Hong Kong after a slow first quarter. JD.com Inc. and NetEase Inc. last month raised $7 billion through second listings in the financial hub. In the first half of this year, the tech companies accounted for almost two-thirds of the city’s total fundraisings via first-time share sales, according to data compiled by Bloomberg.READ MORE: Asia Share Sales Double in Second Quarter Amid Retreat From U.S.Preparations for Wahaha’s offering are at an early stage and details including size and timing could change, the people added. A representative for Hangzhou Wahaha Group said they hadn’t received any relevant information regarding an IPO.(Updates with IPO data in sixth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Chinese flexible display maker Royole Corp. is weighing an initial public offering in China while its planned U.S. listing is put on hold, according to people familiar with the matter.Royole had filed confidentially for a U.S. IPO that could raise about $1 billion, Bloomberg News reported earlier this year. However, the startup is now considering a listing in China, the people said, asking not to be identified as the information is private.Considerations are at an early stage and no final decisions have been made, the people said. A representative for Royole declined to comment on the matter.Royole, known for manufacturing the world’s first commercial foldable phone, had originally planned to raise funds via a private financing round at a valuation of about $8 billion, people familiar with that deal said last year. But the Chinese company turned to the U.S. markets after liquidity tightened during a downturn in China’s venture capital sector, the people said.Since January relations between the U.S. and China have deteriorated sharply, with tensions spanning trade, technology and Hong Kong. Many U.S.-listed Chinese companies are considering second listings closer to home in Hong Kong, while China has been actively seeking to lure innovative technology companies to list in Shanghai and Shenzhen.Royole competes with Samsung Electronics Co. and BOE Technology Group Co. to produce bendable screens using cutting-edge organic light-emitting diode technology. The company, which gave away wraparound-screen hats at the 2018 World Cup in Russia, in January unveiled a smart speaker that packs a bendable display around a cylinder.Its full line of products encompasses head-mounted displays intended for use as so-called mobile theaters and other wearable flexible displays. The company even has a smart writing pad that it sells on Amazon.com, JD.com and in stores globally.Royole’s earlier investors include Knight Capital, IDG Capital, Poly Capital Management, AMTD Group, the funds of Chinese tycoon Xie Zhikun and the venture capital arm of the Shenzhen city government.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Colin Huang’s ascent is one for the history books: In just six months, his fortune swelled by $25 billion -- one of the biggest gains among the world’s richest people.His Pinduoduo Inc., a Groupon-like shopping app he founded in 2015, has become China’s third-largest e-commerce platform, with a market value of more than $100 billion. In the first quarter, as the coronavirus pandemic caused most of the nation’s economy to grind to a halt, PDD’s active users surged 68% and revenue jumped 44%, the company said in May.Now Huang, who has overseen the firm as its American depositary receipts have more than quadrupled in less than two years, has stepped down as chief executive officer.At one point, his net worth climbed as high as $45 billion, placing him just behind China’s wealthiest people -- Tencent Holdings Ltd.’s Pony Ma and Alibaba Group Holding Ltd.’s Jack Ma -- on the Bloomberg Billionaires Index. That’s even as PDD continued to post losses, primarily because it chases growth with the help of generous subsidies and has been known to spend more on marketing than it earns in sales.“Pinduoduo was perfectly positioned for people being stuck at home,” said Tom Ronk, CEO of Century Pacific Investments in Newport, California.Huang, who controlled 43.3% of PDD shares, has reduced his stake to 29.4%, according to a June 30 regulatory filing. His fortune now stands at $30 billion.That excludes a $2.4 billion charitable holding that he shares with PDD’s founding team, and $7.9 billion that went to Pinduoduo Partnership, of which Huang and newly named CEO Lei Chen are members. The partnership will help fund science research and management incentives, according to a letter following Huang’s resignation. The wealth estimate also excludes $3.9 billion that people familiar with the matter said was transferred to an angel investor.PDD declined to comment on Huang’s holdings or net worth.Facing ChallengesHe will remain chairman and work on the company’s long-term strategy and corporate structure to help drive the future of the e-commerce giant, PDD said.“PDD is still facing some high-level challenges in product supply, relationship with brand merchants, logistics and payments,” said Shawn Yang, an analyst at Blue Lotus Capital Advisors. “Colin may want to focus more on these issues.”PDD’s success hinges on deals, which have become particularly popular with customers looking for bargains as the world’s second-largest economy slows. Most of its users come from smaller Chinese cities, and the app gives them extra discounts when they recommend a product through social networks and get friends to buy the same item.Fen Liu, a homemaker in Quanzhou, a provincial city in Fujian, said she accrued enough coupons with her friends’ help to reduce the price of a suitcase to zero.“I couldn’t believe my eyes when I saw my suitcase arrive in the mail,” she said. “It’s made me a loyal Pinduoduo user ever since.”‘Bargain Hunters’While PDD’s aggressive price-reduction strategies have helped win over people with lower incomes, they may stifle the company’s efforts to attract wealthier consumers, according to Charlie Chen and Veronica Shen, analysts at China Renaissance Securities in Hong Kong.“PDD’s users are largely bargain hunters reluctant to buy large-ticket items,” they wrote in a June 29 note, adding that the company’s image remains a key obstacle to users spending more. “We believe PDD is working to change its low-price brand image -- but this could be costly.”That may require heavy marketing and hurt margins further despite a strong user-base foundation for future growth, the analysts said. And PDD’s management has offered no clear path to profitability.Last year, the company’s “10 Billion RMB Subsidies” campaign, which is ongoing, led to a $2 billion increase in sales and marketing expenses to $3.9 billion, and those costs have been at 90% to 120% of revenue for the past two quarters, China Renaissance said.For the nation’s June 18 shopping festival, PDD provided a subsidy program with no cap across different product categories to push spending and attract more users. Other fast-growing Chinese startups -- including rival Meituan Dianping, ride-hailing app DiDi Chuxing and Starbucks Corp. competitor Luckin Coffee Inc. -- have also adopted subsidies strategies to maintain customer loyalty.Huang, 40, grew up in the eastern city of Hangzhou, where Alibaba has its headquarters. After receiving a degree at Zhejiang University, he went to the University of Wisconsin for a master’s in computer science. He began his career at Google in 2004 as a software engineer and returned to China in 2006 to help establish its operations in the country.He then became a serial entrepreneur. He started his first company in 2007, an e-commerce website called Ouku.com that he sold three years later after realizing it was too similar to thousands of others. He then launched Leqi, which helped companies market their services on websites like Alibaba’s Taobao or JD.com Inc., and a gaming firm that let users play on Tencent’s messaging app WeChat. Both took off and Huang found himself “financially free,” according to a 2017 interview.After getting an ear infection, he decided to retire in 2013 at age 33. But following a year of pondering what to do with his life -- he contemplated starting a hedge fund and moving to the U.S. -- he came up with the idea of combining e-commerce and social media. At the time, Alibaba dominated the online business, and WeChat became a must-have application on smartphones in China.The tables have turned since. In 2018, Alibaba launched a PDD-style app in an attempt to lure smaller-town users with bargains. It came months before Huang took his company public in New York, raising $1.63 billion in its July 2018 initial public offering. Since then, PDD has surged 389%, while Alibaba has gained just 13%.In 2017, Huang had said he was unlikely to spend the rest of his life at PDD. While he’s still chairman of the company, he now wants to give more responsibility to younger colleagues to keep the entrepreneurial spirit as PDD matures, he wrote in a letter to employees.“We envision Pinduoduo to be an organization that creates value for the public rather than being a showoff trophy for a few or carry too much personal color,” Huang said. “This will allow Pinduoduo to continually evolve with or without us one day.”(Updates PDD, Alibaba moves in 22nd paragraph. A previous version of this story corrected Fen Liu’s location.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
We at Insider Monkey have gone over 821 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds' and investors' portfolio positions as of March 31st, near the height of the coronavirus market crash. We are almost done with the second quarter. Investors decided […]
But unless the deteriorating relationship actually leads to concrete measure—rather than just heated rhetoric—U.S. stocks may continue to be largely unfazed by the tensions.
This year has been somewhat quiet for Alibaba (NYSE:BABA). Alibaba stock has gained a little less than 5%. That's a solid performance, given some broad indices remain negative year to date. But it's surely not what bulls hoped for at the beginning of the year.Source: Kevin Chen Photography / Shutterstock.com Alibaba has seen some volatility along the way. From January highs to March lows, the stock dropped a little over 25%. But many quality names saw much bigger moves. Relative to the market as a whole, Alibaba's stock just hasn't stood out.At this point, perhaps that's not all that surprising. Alibaba is the sixth-most valuable company listed on U.S. exchanges. Its market capitalization is larger than those of giants like Visa (NYSE:V) and Johnson & Johnson (NYSE:JNJ). The company accounts for a staggering percentage of the Chinese economy: over 5%.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBased on size alone, investors shouldn't expect sizzling returns from Alibaba stock. They should expect more muted volatility. That's pretty much how 2020 has played out.That said, looking at the company's peers, Alibaba's performance seems surprising -- and even disappointing. And that relative performance suggests that the stock should have another rally ahead in the not-too-distant future. Alibaba's Peers SoarAgain, it's easy to argue that Alibaba's YTD performance makes sense. The impact of the coronavirus pandemic and the on-again, off-again trade war on the Chinese economy have kept a ceiling on upside. But the quality of the business kept drawdowns relatively manageable, even as investors panicked in March. * 10 Consumer Stocks to Buy to Ride the Post-Covid-19 Wave But that story starts to fall apart when taking even a cursory look at the company's peers. Other Chinese e-commerce plays have soared. JD.com (NASDAQ:JD), which sits behind Alibaba in terms of market share, has gained a sizzling 72% so far this year. It held up even better in March than Alibaba stock.Upstart Pinduoduo (NASDAQ:PDD), meanwhile, has gone parabolic. PDD stock has rallied 127% in 2020. The stock has nearly tripled from March lows.Clearly, investors are bullish on Chinese e-commerce. Indeed, they're bullish on Chinese tech more broadly. With the exception of Baidu (NASDAQ:BIDU), basically every large-cap tech stock in the country has outperformed Alibaba in 2020.If Alibaba was performing poorly, that might make some sense. That doesn't appear to be the case. Fiscal-fourth-quarter earnings last month handily beat analyst estimates. Alibaba stock sold off anyway.Pinduoduo, in particular, has gobbled up some market share. But it's also a far smaller company that is growing off a smaller base.The performance of Alibaba stock relative to Chinese tech plays is surprising. And it undercuts any real bear case. If investors were bearish on e-commerce, PDD and JD wouldn't be soaring. If they feared the Chinese economy more broadly, smaller names would be selling off across the board.That's not what's happening. That in turn suggests that Alibaba should catch up at some point. Alibaba vs. AmazonOf course, there's also the comparison to Amazon (NASDAQ:AMZN).To be sure, the two companies are not quite as equivalent as some observers claim. Alibaba is not quite the "Amazon of China."That said, AMZN stock has gained 49% so far this year. It has added about $450 billion in market value in six months, a figure equal to nearly three-fourths of Alibaba's market capitalization.And while the two companies have their differences, there are two core reasons why AMZN stock has soared. The pandemic has accelerated e-commerce adoption. Just as importantly, if not more so, its accelerated cloud adoption.Alibaba has those exact same drivers. Obviously, it's an e-commerce giant. And as I detailed earlier this year, it's investing heavily to extend its early dominance in the cloud business in Asia.Yet -- again -- the stock hasn't been rewarded. Amazon's stock has. Here, too, the divergent performance doesn't make a ton of sense. Alibaba Stock Looks Like a Long-Term BuyAs a result, it seems like there are two potential outcomes. Either Alibaba stock rallies sharply and catches up to these other names. Or those other names decline due to unsustainable gains of late.The latter outcome admittedly isn't impossible. There is no shortage of skeptics toward Amazon's valuation. Some investors see cause for caution toward China more broadly.But I'm not one of those investors. China still literally has hundreds of millions of citizens that are headed for the middle and upper classes. Their increasing disposable income creates a long-term tailwind for Alibaba sales.Meanwhile, the company's stock traded at an enormous discount to Amazon, even heading into this year. The gap now is even wider.And at some point, that gap will close. And it's most likely to close because Alibaba stock rallies, not because Amazon stock tumbles.It seems like right now, investors are chasing the "hot" names, and ignoring the biggest and best operator in China. That will change, and it's then that Alibaba stock will get the credit it deserves.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Alibaba Stock Won't Be Left Behind Smaller Rivals Forever appeared first on InvestorPlace.
Fitz-Gerald Group Chief Investment Officer Keith Fitz-Gerald joins Yahoo Finance’s Akiko Fujita to break down the latest market action after President Trump says the trade deal with China is "intact" following an aide stating it was over.
JD.com’s ecommerce sale allayed concerns over China’s tepid consumer spending. At the same time, the company’s shares rose in its secondary listing debut in Hong Kong, reinforcing the trend of overseas-listed Chinese firms coming home.
Alibaba Group Holding Ltd. (NYSE: BABA) and JD.com Inc. (NASDAQ: JD) made record sales at the "618" shopping festival in China on Thursday, CNBC reported.What Happened JD.com reported a total transaction volume of $37.99 billion in the 24-hours of the festival, according to CNBC. This is a 33.6% increase over the approximately $28.5 billion total transaction volume reported last year.Alibaba reported a gross merchandise value, as it refers to the total sales across its e-commerce platforms, of $98.52 billion.618, celebrated on June 18, is one of the two major yearly shopping events promoted by the e-commerce companies, the other being Singles Day celebrated on November 11.Why It Matters The rise in 618 sales numbers for the two Chinese e-commerce behemoths suggests that consumer demand remains strong in the country despite the economic impact of the extended lockdowns implemented to curb the spread of the novel coronavirus (COVID-19).Alibaba and JD.com had also posted record sales of $67.6 billion together during the latest Singles Day festival in November last year.Price Action Alibaba shares closed 0.3% higher at $223.54 in New York on Thursday and traded 0.3% higher in the after-hours session.JD.com shares closed nearly 2% lower at $60.79 in New York the same day and added 0.3% in the after-hours.See more from Benzinga * Amazon And Valentino Jointly Sue New York Designer For Counterfeiting Shoes * JD.com Shares Surge In Hong Kong Debut * ByteDance Explores Partnership With Singapore's Lee Business Family For Digital Banking License: Report(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Alibaba Group Holding Ltd. and JD.com Inc. handled record sales of $136 billion during the country’s biggest online shopping gala of the post-pandemic era, suggesting China’s nascent consumer spending recovery has legs.The twin e-commerce giants put nationwide consumption to its first major test since the pandemic with the annual “6.18” summer extravaganza that concluded Thursday. Transactions across JD’s online platforms during the 18-day marathon leapt 34% to 269.2 billion yuan ($38 billion), a faster pace than in 2019. And Alibaba said it handled 698.2 billion yuan during its own campaign, without a year-earlier comparison. JD’s shares stood largely unchanged after rising 3.5% in their Hong Kong debut.China’s largest retailers counted on pent-up demand during the event -- created by JD to commemorate its June 18 founding anniversary -- to make up for lost sales during a coronavirus-stricken March quarter. Global brands and smaller merchants alike stocked up on goods for months in anticipation of an online bargain spree surpassed only by the Nov. 11 Singles’ Day in scale. The final tally underscored how hundreds of millions of shoppers remain willing to spend after the world’s No. 2 economy contracted for the first time in decades, especially given huge discounts as Covid-19 shifted buying to the internet.“The strong GMV at 6.18 will help to dispel market anxiety about virus-related disruptions,” Bloomberg Intelligence analyst Vey-Sern Ling said. “Chinese e-commerce platforms will probably deliver strong 2Q sales and profit recovery due to pent-up consumer demand and an accelerated shift to digital consumption channels driven by the virus.”This year’s deals-fest culminated with the biggest bargains Thursday and featured more generous subsidies than ever before, as well as an unprecedented cohort of live-streaming personalities. Competition also intensified with the likes of ByteDance Ltd. and Kuaishou -- whose video app now sells JD goods -- vying for buyers.“Chinese and foreign brands had sluggish sales due to the pandemic, and 6.18 has become their most important opportunity in the first half,” JD Retail Chief Executive Officer Xu Lei said in an interview with Bloomberg Television. For discretionary items like home appliances, “we’ve seen a recovery in consumption.”Read more: Chinese Shoppers Can Go Out Again. Online Buys Show They Won’tChinese retail suffered a record collapse in the first three months of 2020. While it’s on the mend, latest data shows private consumption still sluggish, dashing hopes of a V-shaped recovery as people head back to work. The picture is complicated by the fact that Covid-19 has kept people away from stores and shifted an unknown proportion of retail activity online, propping up online purchases.JD has projected revenue growth of 20% to 30% this quarter. Xu -- widely viewed as the front-runner to succeed billionaire founder Richard Liu -- says JD is on track to meet that goal and isn’t threatened by competitors encroaching upon its turf, like in consumer gadgets.“I don’t dance with them, I dance with users,” he said.Signs had grown this month that China’s e-commerce giants were on track for record sums as measured by gross merchandise value, or total value of goods sold. During the first ten hours of its 6.18 campaign, Alibaba’s Tmall business-to-consumer marketplace logged sales 50% higher than during the same period last year, after participating brands doubled. JD has said sales of imports like HP laptops and Dyson hairdryers soared, while it’s selling more fresh produce in smaller cities.Read more: JD’s Outlook Beats After E-Commerce Surges in China LockdownInitiated in 2014 as a riposte to Alibaba’s Singles’ Day, 6.18 has become yet another annual ritual for e-commerce companies and their offline partners from Walmart Inc. to Suning.com Co. Beyond headline figures, it’s less clear how much it contributes to the bottom line given the enormous discounting involved.“The result is good as far as growth is concerned, but in terms of margins, all the players will see the consequences,” said Steven Zhu, analyst at Pacific Epoch. “It’s just what I call paid-GMV for all the platforms. It’s the time that people have to have a good number after the coronavirus, so they just do it at whatever the cost.”Alibaba, along with brands on its platforms, committed cash and other coupons worth a total of 14 billion yuan, according to the company. JD said it offered 10 billion yuan in subsidies.“User growth and retention, and the digitization of brands and merchants are key considerations” when Alibaba pushes subsidies during promotions like 6.18, said Alibaba Vice President Mike Gu, who heads Tmall’s fashion and consumer goods businesses.Read more: Alibaba Drops After Projecting Slowing Growth in Uncertain TimesMore broadly, sales of fast-moving consumer goods on the Tmall and Taobao marketplaces in the June quarter have so far exceeded the pace of 2019’s final quarter, Gu said in an interview. Thanks to 6.18, apparel growth this month has also climbed back to pre-Covid-19 levels, he added.Live-streaming is also playing a bigger role during this year’s 6.18, at a time Covid-19 is fueling an unprecedented boom in online media. Alibaba’s Taobao Live championed the use of influencers to sell everything from lipstick to rockets, prompting rivals like JD and Pinduoduo Inc. to follow suit.Social media companies like TikTok-owner ByteDance and Tencent Holdings Ltd.-backed Kuaishou are jumping on the bandwagon. Their mini-video platforms in China have lured a long list of tech chieftains hawking products of their own to live-streaming fans: The latest was NetEase Inc.’s usually reclusive founder, William Ding. Last week, his debut on Kuaishou amassed 72 million yuan of sales in just four hours.“I’ve never eaten beef jerky as tasty as this in the last twenty years,” the billionaire said during the livestream.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
JD.com’s annual “618” online shopping extravaganza racked up a total of 269.2 billion yuan ($38 billion) worth of transactions, as consumers splurged during China’s first major e-commerce sale since the pandemic began.
Rewarded for its vertically integrated delivery network during COVID-19, JD.com leans in harder to logistics with new listing and festival.
The shares of JD.com Inc. (NASDAQ: JD) were trading 3.54% higher in its Hong Kong debut at press time on Wednesday.What Happened The Chinese e-commerce company had raised nearly $3.9 billion (HKD 30 billion) in its secondary public offering in the autonomous city last week, selling 133 million shares priced at $29.16 each.JD.com shares were trading at approximately $30.27 in Hong Kong at press time.The Alibaba Group Holding Ltd. (NYSE: BABA) competitor is listing in a secondary market against a backdrop of rising tensions between the United States and China.The U.S. Senate last month passed a bill that threatens Chinese companies with delisting at the country's exchanges if they can't establish that they aren't owned or controlled by a foreign government.Exchange desks, including the Nasdaq Stock Market, have also reportedly tightened listing rules for Chinese companies, in the aftermath of the Luckin Coffee (NASDAQ: LK) securities fraud discovery.Price Action JD.com shares closed nearly 1.7% higher in New York at $62.01 on Wednesday. The shares were down 0.3% in the after-hours session.See more from Benzinga * Chinese Online Grocery Seller Dada Welcomes 'Better Auditing And Regulation,' As Company Starts Trading At Nasdaq(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Chinese e-commerce giant JD.com’s shares rose 5.7% after opening at HKD $239 (about USD $30.80) during their first day of trading on the Hong Kong stock exchange. JD.com had originally priced the shares for the secondary offering at $226. JD.com issued 133 million new Class A ordinary shares as part of the secondary offering and said it expects its net proceeds to be about HKD 30.05 billion (or about $3.9 billion).
(Bloomberg) -- JD.com Inc. soared about 6% in its Thursday debut in Hong Kong, a solid start that underscores strong investor appetite for a growing line-up of Chinese tech giants seeking to list closer to home.The Chinese online retailer, which already has stock listed in the U.S., opened at HK$239 after raising $3.9 billion in its Hong Kong share sale. That’s after its shares changed hands in gray markets at a roughly 5% premium to its HK$226 listing price in the days prior.JD debuts as tensions between Washington and Beijing threaten to curtail Chinese companies’ access to U.S. capital markets, particularly after once high-flying Luckin Coffee Inc. crashed amid an accounting scandal. It’s a victory for Hong Kong, coming on the heels of Alibaba Group Holding Ltd.’s $13 billion share sale and the passing of a national security law that critics fear could jeopardize its status as a financial hub. Fellow internet giant NetEase Inc. gained 6% in its own Hong Kong coming-out party last week.“We hope investors from China and Asia can better understand JD’s concept, service and future development,” JD Retail Chief Executive Officer Xu Lei told Bloomberg Television. “Hong Kong is one of the freest economies in the world. We hope to have many mature institutional and individual investors share JD’s growth.”Read more: Alibaba, JD Test Virus Recovery With Online Sales ExtravaganzaJD and its rivals will now put China’s nascent consumer spending recovery to the test when they wrap up the country’s biggest online shopping gala of the post-pandemic era. China’s largest retailers are hoping the “6.18” or June 18 extravaganza that began this month unleashed pent-up demand, making up for lost sales during a coronavirus-stricken March quarter.Global brands and smaller merchants alike stocked up on goods for months in anticipation of the summer event, a bargains buffet surpassed only by the Nov. 11 Singles’ Day in scale. JD and Alibaba are expected to release final results of their haul after midnight.Longer term, the company will use the proceeds of the stock sale to continue building its logistics and delivery network, a key advantage during the pandemic because JD could better control shipping.“The process to build up a supply chain is very time consuming and cost consuming, but we want to make it better,” Xu said. “When we have better supply chain, it would bring in a better user experience.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Institutional investors are bidding for JD.com’s Hong Kong shares before this week’s debut at slightly more than the listing price.Some institutional investors have bid to buy the Chinese e-commerce company’s shares at between HK$226.10 to HK$237 apiece in gray market trading Wednesday, according to people familiar with the matter. That represents a premium of as much as 4.9% compared to the listing price of HK$226. Brokers quoted offers to sell the shares at between HK$239 and HK$245 each, the people said.JD.com, which went public on Nasdaq in 2014, is expected to start trading in Hong Kong on June 18. The stock rose 2.5% in U.S. trading on Tuesday. Traders will be able to short the stock immediately after its debut, as well as hedge with futures and options, according to the Hong Kong exchange operator.JD.com raised $3.9 billion last week selling 133 million new shares in Hong Kong in the second-biggest listing of the year, part of a wave of Chinese companies that are fleeing the U.S. and seeking secondary listings in the city.Last week, internet gaming company NetEase Inc. began trading in the city, with the Hong Kong-listed shares now up 4.1% from the offer price after an initial pop on its first day of trading. Prior to listing, it also drew a small premium on the gray market.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
JD.com Inc (NASDAQ: JD) is poised to benefit from positive industry trends, with recent data on e-commerce and express couriers suggesting a recovery, according to BofA Securities.The JD.com Analyst: Eddie Leung maintained a Buy rating for JD.com, while raising the price target from $60 to $70.The JD.com Thesis: While China's online retail sales of physical products grew 20% year-on-year in April and May, the parcel volume of couriers, most of which comprises of e-commerce, surged 37%, Leung said in the note.He added that this growth was driven by pending demand for categories like appliances, it was also led by "continuous strong momentum" in categories like groceries, food & beverages, and fresh produce.The analyst expects JD.com's growth to match this trend and believes the performance can be even better due to the company's: * Low exposure to apparel, a category that is under pressure * User growth in non-major cities, driven by its logistics coverage, offline partner and franchisee stores, customized factory-direct products and the JingXi app * Strong foothold of the supermarket categories * Ability to retain customers with better recommendations and social commerceSince JD.com's secondary listing in Hong Kong is expected to take place towards the end of the second quarter of 2020, the impact of the dilution may become noticeable only from the third quarter.JD Price Action: Shares of JD.com had risen 2% to $60.76 at the time of publication Tuesday.Related Links:JD.com Raises .87B In Hong Kong Listing: ReportChinese Internet Giant NetEase's Shares Surge In Hong Kong On DebutLatest Ratings for JD DateFirmActionFromTo May 2020CFRAMaintainsBuy May 2020NomuraMaintainsBuy May 2020StifelMaintainsHold View More Analyst Ratings for JD View the Latest Analyst Ratings See more from Benzinga * BofA Downgrades Pinduoduo On Monetization Concerns * Alibaba Plans Massive Cloud Investment, Wedbush Sees 'Key Turning Point'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
JD.com (NASDAQ:JD) has had a great run on the share market with its stock up by a significant 51% over the last three...
Investing in China has never been easy, and recently it’s become a whole lot harder. But there’s still opportunity, if investors choose a targeted approach.
The Covid-19 crisis could mark the end of emerging markets, at least in the way that most investors think about them—as a unified asset class. Under the vast umbrella of emerging markets, one group of stocks has firmly bucked the decline and is poised to keep climbing. As their performance shows, picking stocks, rather than countries or regions, has become the name of the game with emerging markets.
The platform saw historic growth because of trapped luxury demand, flexible omnichannel solution, and nonstop white-glove delivery amid COVID-19 disruption.