JD.com and Alibaba rake in $130bn during sales event as Chinese economy begins recovery

Ecommerce

JD.com and Alibaba raked in more than $130 billion (£104 billion) during the ‘618’ shopping festival in signs that the world’s second largest economy is returning to health.

June 18th saw JD.com launch its annual shopping festival, which coincided with its $4 billion secondary public listing on the Hong Kong stock exchange.

During the event, JD.com saw transaction volumes top $37.99 billion (£30.58 billion), easily outpacing last year’s record sales $29.2 billion (£23.2 billion).

Despite the event being launched by JD.com, its larger rival Alibaba cashed in on the event and also achieved record gross merchandise volumes of $98.52 billion (£79.31 billion).

READ MORE: JD.com raises $4bn in 2020’s second largest listing

Notably this was over two times the GMV it recorded during its own sales event, Singles Day, last November.

This will serve as good news for investors throughout China as it could represent the green shoots of recovery for the country’s economy, which shrunk 2.8 per cent in May.

The same day, JD.com successfully raised $4 billion (£3.2 billion) in its secondary listing in Hong Kong, marking the world’s second largest share sale this year.

The Chinese ecommerce giant’s shares jumped nearly six per cent on their first day of trading, after opening at 239 HK dollars (£24.63) per share, above the 226 HK dollars (£23.29) it had originally priced shares at for its secondary listing.

JD.com said it would invest the capital in “key supply chain based technology initiatives” helping improve customer experience and efficiency.

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