JD.com and Alibaba report an unprecedented £110 billion in combined sales on “618”

Sources confirmed on Friday that China’s largest e-commerce giants, JD.com (NASDAQ: JD) and Alibaba (NYSE: BABA) made combined sales of an unprecedented £110 billion on “618”, that is among the biggest annual shopping events in China. JD.com recently raised £3.04 billion via its secondary listing in Hong Kong.

JD.com Nasdaq listed shares are currently less than 1% up in premarket trading on Friday. At £49.16 per share, JD.com is roughly 60% up year to date in the stock market after recovering from a low of £28.40 per share in March. At the time of writing, the Chinese e-commerce giant has a market capitalisation of £71.48 billion and a price to earnings ratio of 108.02.  

JD.com reports £30.62 billion in transaction volume on 618

The event was of interest for the analysts and investors alike as it was expected to signal the strength of consumer spending in the largest Asian economy after the Coronavirus pandemic that halted economic activity in recent months.

According to JD.com, its transaction volume came in at £30.62 billion this year that topped £22.96 billion in 2019. The transaction volume accounts for all orders placed via its online platform on “618” and covers the entire range of its products and services.

Alibaba, on the other hand, recorded £79.41 billion in gross merchandise value (GMV) that covers sales across its shopping platforms. The e-commerce giant reported a record £30.58 billion of GMV last year on Singles Day. Its GMV on “618” came in more than 100% higher on Friday. Singles Day is another of China’s largest annual shopping events.

Digital sales in May were up by 15.6% in China

The record figures, as per experts, hint at a quick recovery in consumers’ health in China. While retail sales in the world’s 2^nd largest economy were still 2.8% down on a year over year basis in May, digital sales were up by 15.6%. Both Chinese e-commerce companies have benefitted significantly from the rise in online shopping in China.

Alibaba also launched its secondary listing in Hong Kong last year in November. Its NYSE listed shares are currently exchanging hands at £180.71 per share that marks a little over 2% increase year to date in the stock market after recovering from a low of £142.14 per share in March.

At the time of writing, the Chinese multinational technology company is valued at around £600 billion and has a price to earnings ratio of 28.32.