Latest news with #Alibaba
Forbes
3 hours ago
- Business
- Forbes
China Market Update: June Trade & Credit Data Beat Expectations
CLN Asian equities were mixed overnight, led higher by Thailand and the Philippines, as President Trump's tariff ire over the weekend was focused on the EU and Mexico. Hong Kong grinded higher throughout the trading day. Stronger-than-expected export/import data provided a late-day boost, while Shanghai and Shenzhen bounced around the room to end slightly higher. Hong Kong saw large buying from Mainland China via Southbound Stock Connect. Internet stocks were largely higher, as Alibaba gained +0.95%, Tencent gained +0.68%, and Meituan gained +0.75%, though video platform Bilibili fell -0.35%, despite announcing 2025 gaming and advertising revenue growth targets of +20% and +15%. Pharmaceuticals, biotech, auto, coal, non-ferrous metals, precious metals, and oil all had good sessions, while consumer services, such as hotels and restaurants, were off. The Mainland's pockets of strength were oil, banks, electricity, telecom, and precious metals. Meanwhile, semiconductors, software, healthcare equipment, and defense were all off. Battery maker Contemporary Amperex Technology (CATL) fell -1.1% in Mainland trading, despite a deal with Australian miner BHP. Solar manufacturer Tongwei gained +1.18% after announcing its first half net income loss would be in a range from RMB -3.9 billion to -5.2 billion, despite installed capacity growth due to 'the imbalance between supply and demand in the industry, which has not improved significantly, and the product prices of each link have been continuously depressed.' Peer LONGi Green Energy Technology fell -0.55% after announcing its first half net income loss will be between RMB -2.4 billion and RMB -2.8 billion. Hopefully, overcapacity efforts kick into gear as investors look up China's government's new buzzword: anti-involutionary. Involution is when intense competition leads to diminished returns. Solar, steel, cement, autos, and E-Commerce are areas highlighted by the government to face 'anti-involutionary' measures. The effect could bring the end of China's deflationary effect on the global economy as well as its domestic economy. It could also lead to higher margins and profits for listed corporations. It is also very aligned with President Trump's China demands. Export/import and credit data release was stronger than expected. Chart1 Some additional metrics to consider include the following. Chart2 The People's Bank of China (PBOC) held a press conference overnight. The release noted 'the effect of monetary policy supporting the real economy is relatively obvious', as social financing, new loans, and M2 data all beat expectations. Since 2020, the bank reserve requirement ratio has been cut twelve times, along with '9 policy rate reductions, lowering 1-year and 5-year LPR by 115 basis points and 130 basis points, respectively.' (The 5-Year Loan Prime Rate determines the mortgage rate). Lower interest rates have lowered the average corporate loan yields by 0.45% to 3.30% and new housing loan rates by 0.60% to 3.10%. Efforts will continue 'to implement moderate loose monetary policy… better promote the expansion of domestic demand…'. The release also stated that the market expects interest rate cuts in the second half of the year, as the 'misalignment of the monetary policy cycle between China and the United States will be improved', as spreads narrow. It is funny that the PBOC and Trump both think Powell should cut US interest rates. GDP, new and second-hand home sales, retail sales, industrial production, and fixed asset investment will all be reported today. On Friday, I stated that Hank Paulson's conversation with Vice Premier Ding Xuexiang received significant attention in China. I incorrectly stated that Paulson was a Democrat. Paulson was Secretary of the Treasury under George W. Bush. My bad! He did endorse Hillary Clinton in 2016, despite being a lifelong Republican. New Content Read our latest article: KraneShares KOID ETF: Humanoid Robot Rings Nasdaq Opening Bell Please click here to read Chart3 Chart4 Chart5 Chart6
Bloomberg
6 hours ago
- Business
- Bloomberg
Jensen Huang Talks Up Nvidia's Strategic Value to US as He Heads to China
Welcome to Tech In Depth, our daily newsletter about the business of tech from Bloomberg's journalists around the world. Today, Ed Ludlow addresses the latest commentary from Nvidia's chief executive officer about the fundamental role of AI hardware and infrastructure. Alibaba's slump: A protracted battle in China's food-delivery market has chopped $100 billion in market value from Alibaba Group Holding Ltd., with no end in sight for damage to profits and investor confidence.
South China Morning Post
11 hours ago
- Business
- South China Morning Post
Alibaba delivers 80 million orders in 1 day amid fierce price war with Meituan, JD.com
Alibaba Group Holding tied its own record of 80 million on-demand deliveries on Saturday, the e-commerce giant reported on Monday, as it wages an all-out battle against rivals Meituan and in China's quick-delivery market – with freebies and eye-popping discounts as the ammunition. Alibaba 's new instant commerce brand Taobao Shangou said its daily active users last week jumped 15 per cent from the previous week, which would put number at around 230 million, though the company did not specify the total. The firm also hit 80 million deliveries on July 5. Alibaba owns the South China Morning Post. Meituan , Taobao , and showered consumers with cash subsidies on Saturday in a spectacular and nationwide campaign that could change the face of shopping in China. By literally giving away products such as milk tea to woo consumers, many stores found themselves so flooded with online orders that they had to suspend walk-in service, upending traditional business models. Meituan rolled out coupons offering milk tea for 0 yuan, while Taobao's flash sale provided coupons worth 188 yuan (US$26) that consumers could use for goods such as low-priced milk tea and breakfast every Saturday. It also offered surprise coupons, such as one offering 18.80 yuan off on purchases above 18.80 yuan. said on Friday that it would offer 100,000 servings of crayfish every night at a fixed price of 16.18 yuan from 6pm until 2am. The platform's instant retail order volume shot up to a new high of 150 million orders on Saturday. Gleeful consumers rushed to take advantage of the promotions. Many shared tips on how to buy multiple drinks to share with friends. Huang Yuxiang, a 22-year-old engineer, used a coupon to buy a cup of Luckin Coffee for 0 yuan this weekend via Taobao.
The Hindu
12 hours ago
- Business
- The Hindu
China's Moonshot AI releases open-source model to reclaim market position
Chinese artificial intelligence startup Moonshot AI released a new open-source AI model on Friday, joining a wave of similar releases from local rivals, as it seeks to reclaim its position in the competitive domestic market. The model, called Kimi K2, features enhanced coding capabilities and excels at general agent tasks and tool integration, allowing it to break down complex tasks more effectively, the company said in a statement. Moonshot claimed the model outperforms mainstream open-source models in some areas, including DeepSeek's V3, and rival capabilities of leading U.S. models such as those from Anthropic in certain functions such as coding. The release follows a trend among Chinese companies toward open-sourcing AI models, contrasting with many U.S. tech giants like OpenAI and Google that keep their most advanced AI models proprietary. Some American firms, including Meta Platforms , have also released open-source models. Open-sourcing allows developers to showcase their technological capabilities and expand developer communities as well as their global influence, a strategy likely to help China counter U.S. efforts to limit Beijing's tech progress. Other Chinese companies that have released open-source models include DeepSeek, Alibaba, Tencent and Baidu. Founded in 2023 by Tsinghua University graduate Yang Zhilin, Moonshot is among China's prominent AI startups and is backed by internet giants including Alibaba. The company gained prominence in 2024 when users flocked to its platform for its long-text analysis capabilities and AI search functions. However, its standing has declined this year following DeepSeek's release of low-cost models, including the R1 model launched in January that disrupted the global AI industry. Moonshot's Kimi application ranked third in monthly active users last August but dropped to seventh place by June, according to a Chinese website that tracks AI products.
Qatar Tribune
19 hours ago
- Business
- Qatar Tribune
China faces economic downturn as mass layoffs accelerate
Agencies London China, the world's second-largest economy, is grappling with an economic downturn that many experts now warn could spiral into a deep recession, accompanied by widespread social unrest. The alarming combination of mass layoffs, corporate bankruptcies, and plummeting consumer confidence is rapidly eroding the foundation of what has been, for decades, one of the world's most formidable engines of growth. For years, China's economic narrative was defined by high growth rates, expanding middle-class prosperity, and its transformation into a global manufacturingpowerhouse. But cracks in that facade have been widening steadily, with recent months exposing deeper structural vulnerabilities that are proving difficult to conceal. A growing chorus of economists and analysts contends that China is now teetering on the brink of its most severe economic contraction in decades, one that carries significant global ramifications. From sprawling manufacturing hubs in Guangdong to tech centres in Shanghai and Beijing, companies across sectors are cutting jobs at unprecedented rates. The once-celebrated tech sector, which fuelled dreams of China's dominance in artificial intelligence and innovation, is now riddled with uncertainty. Tech giants such as Alibaba, Tencent, and ByteDance have all announced significant workforce reductions over the past year. But the job losses extend far beyond the technology sector. China's vast real estate industry — long a pillar of economic growth — has been in freefall since the collapse of major developers like Evergrande and Country Garden. The cascading failures in real estate have led to thousands of layoffs in construction, property management, and supply chain firms. Additionally, state-owned enterprises, traditionally seen as stable sources of employment, have begun quiet rounds of staff reductions under growing financial pressure. The manufacturing sector, often dubbed the 'world's factory,' has not been spared either. Demand for Chinese exports has waned amid a slowing global economy, mounting geopolitical tensions, and an exodus of foreign investors to markets in Southeast Asia and India. Factory closures and workforce cuts have become common in regions that once symbolised China's industrial might. The corporate bankruptcy wave has only compounded the crisis. Recent government data shows that business bankruptcies in China have surged to record levels, surpassing those seen during the global financial crisis of 2008. Thousands of small- and medium-sized enterprises (SMEs), unable to access credit or cope with falling demand, are shutting their doors. Real estate continues to be at the epicentre of the financial collapse. The property sector, which accounts for nearly 30% of China's GDP when factoring in construction and related industries, is mired in debt defaults, unfinished projects, and declining home prices. The psychological impact of the real estate meltdown cannot be overstated, especially in a country where property ownership has long been synonymous with wealth and security. Chinese banks, particularly regional and smaller institutions, are now under mounting stress as bad loans tied to the property market and faltering businesses pile up. Although Beijing has taken steps to inject liquidity into the system and backstop vulnerable banks, the deepening credit crisis raises fears of contagion within the financial sector. The consequences of layoffs and bankruptcies are reverberating through Chinese society, eroding consumer confidence and fuelling widespread economic anxiety. Retail sales, which had shown signs of recovery post-pandemic, have stagnated. Youth unemployment has surged to unprecedented levels, with some estimates suggesting that nearly one in four young Chinese workers is without a job. For a generation raised on promises of prosperity and upward mobility, the reality of economic stagnation is breeding disillusionment. The so-called 'lying flat' and 'let it rot' movements — expressions of youth discontent and rejection of societal pressures — have gained momentum as young people lose faith in the system's ability to deliver stability and opportunity. With economic hardship mounting, so too are signs of unrest. Sporadic protests have erupted in cities across China, from demonstrations by unpaid construction workers to pensioners decrying cuts to healthcare benefits. Though largely localised and contained, these expressions of public anger hint at deeper frustrations simmering beneath the surface. The Chinese Communist Party (CCP) has long derived its legitimacy from its ability to deliver economic growth and rising living standards. As that social contract frays, the risks of more widespread unrest grow. Authorities have responded with tightened surveillance, censorship, and an aggressive security apparatus aimed at preventing localised grievances from snowballing into national movements. However, even state-controlled media, which is typically a mouthpiece for economic optimism, has struggled to downplay the severity of the downturn. Official narratives touting 'high-quality development' ring hollow to millions facing job losses, shrinking wages, and financial insecurity. At the heart of China's economic woes lie deep-seated structural issues. The nation's decades-long reliance on investment-driven growth, fuelled by debt and speculative real estate development, has created vast imbalances. Repeated efforts to pivot toward consumption-led growth have faltered, hampered by an ageing population, income inequality, and a fragile private sector constrained by political pressures. The demographic crisis, in particular, is accelerating. With birth rates plummeting and the workforce shrinking, China faces long-term economic headwinds that will be difficult to reverse. Meanwhile, an increasingly assertive geopolitical posture has strained relations with key trading partners, including the United States, Europe, and neighbouring Asian economies. Foreign investors, once eager to tap into China's massive market, are growing wary. Capital outflows have surged, foreign direct investment has slowed, and supply chains are shifting away from China toward alternative markets deemed less risky. This exodus threatens to undermine Beijing's ambitions of technological self-sufficiency and economic resilience. For Chinese policymakers, the current crisis represents a pivotal test. Attempts to stabilise the economy through interest rate cuts, modest stimulus measures, and regulatory adjustments have so far yielded limited results. While some officials have acknowledged the need for deeper reforms, there is little consensus on how to address the overlapping crises of debt, unemployment, and social discontent. The political stakes are enormous. President Xi Jinping has consolidated power to an unprecedented degree, tying his leadership to the promise of national rejuvenation and economic prosperity. A prolonged downturn threatens not only economic stability but also the narrative of China's inevitable rise. With the nation facing a perilous combination of recession, mass layoffs, bankruptcies, and rising unrest, China's economic trajectory is now under intense scrutiny.
