Alibaba Group Holding Inc. BABA, JD.com Inc. JD and Pinduoduo Inc. PDD were all advancing strongly in premarket trading on Tuesday, on top of Monday's gains.
What Happened: The stocks got a shot in the arm from a report released by the National Bureau of Statistics, which showed online retail sales continued to increase and its contribution to overall retail sales also improved.
The NBS report showed online retail sales rose 7.2% year-over-year in the Jan-Oct period, faster than the 6.1% growth in the Jan-Sept period.
This should bode well for Alibaba, JD and Pinduoduo, which are major players in the ecommerce industry.
Ecommerce strength aside, most other economic data released on Tuesday showed softening of economic conditions amid the renewed COVID-19 outbreak that forced the imposition of stricter lockdown norms. Retail sales fell 0.5% year-over-year in October, marking the first decline since the Shanghai lockdown earlier this year, and industrial production growth came in below expectations. This should support stimulatory policy moves from the government and the domestic central bank.
According to Benzinga Pro data, Alibaba jumped 10.98% to $79.16 in premarket trading Tuesday. JD rose 8% to $54.92 and Pinduoduo climbed 5.73% to $69.14.
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