Benzinga - China stocks are moving to the downside in premarket trading on Monday, led by e-commerce company JD.com Inc. (NASDAQ: JD). Peers Alibaba (NYSE:BABA) Group Holding Limited (NYSE: BABA) and Pinduoduo Inc. (NASDAQ: 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.
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.
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