JD.com stock rises on 2024 pay hike plans: RPT
JD.com (JD) stock is rising Thursday morning following plans to hike employee salaries in 2024, according to Bloomberg. Yahoo Finance Live highlights China's economic conditions and how it is weighing on various Chinese e-commerce companies.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Video Transcript
RACHELLE AKUFFO: Jd.com shares are climbing higher today. This comes after news that the Chinese e-commerce company is planning a salary bump for its workforce next year. That's according to a Bloomberg report.
Once China's number two online retailer by value, JD came down from the pedestal making way for newcomers like ByteDance's Douyin and Pinduoduo. Now, it's been a tough year for the e-commerce industry in China because of high competition and low consumption.
And with that in mind, this pairs nicely with the action that we saw from the People's Bank of China. China's central bank out with a statement today with policy moves to try and battle deflation, stimulate more consumer prices, as well, and boosting monetary policy. Something that we know has the Chinese government has been trying to do ever since coming out of COVID, and really not seeing the sort of gains they saw in consumption, where we're actually seeing almost all the Chinese tickers on the Golden Dragon Index in the green today, Diane.
DIANE KING HALL: Yeah. But when you think about jd.com, it is certainly getting a bump for the day. But we'll see how much this carries it forward. Because it's had a tough year, when you compare it to, as you mentioned, Pinduoduo, that's the parent company of Temu. And Temu has really taken off this past year.
So if you look at year to date for JD, look, it's still down about 50% year-to-date. So it has a lot of catch up to do when it comes to Pinduoduo.
Temu has really taken over. In fact, Temu has taken over Pinduoduo, the company behind Temu. It has taken over so much that it's a concern now for Sheehan. And there's been this back and forth to them. And jd.com has become, not really a footnote, but it's trying to reclaim some of the position that it had.
So we'll see what this move-- it shows some confidence, I suppose in terms of its balance sheet, its ability to actually plan for this salary increase. But can it catch up to Pinduoduo, the company behind, Temu, it remains to be seen.
RACHELLE AKUFFO: It's true. We'll see. I guess they're trying to get out ahead of it, if there is going to be more money poured into this trying to, at least, make themselves to be the place to be the employer.
