Why JD, Alibaba And Pinduoduo Are Falling Today

China stocks are moving to the downside in premarket trading on Monday, led by e-commerce company JD.com Inc. JD. Peers Alibaba Group Holding Limited BABA and Pinduoduo Inc. PDD were also down sharply.

What Happened: China continues to be a hotbed for COVID-19 and the intermittent outbreaks have affected manufacturing in the country. Consumers now have less money to spend as a result of the multiple COVID resurgences and its impact on the economy. This has a direct effect on e-commerce companies, which rely largely on customer spending.

See Also: Alibaba, Nio Slide Over 3%: Hong Kong Stocks Falter As China COVID-19 Death, Rising Cases Spark Fears

News out of China showed that COVID-19 cases remained steady around April peaks. The country on Monday reported the death of an 87-year-old man due to COVID-19, the first since May 26.

Notwithstanding the gloomy economic outlook, these companies have reported fairly resilient September quarter results.

Price Action: In premarket trading on Monday, Alibaba shares fell 2.90% at $78.15, according to Benzinga Pro data. JD.com slumped 4.85% to $53.35 and Pinduoduo slipped 2,34% to $68.51.