Strong corporate profits in China as consumer activity increases

Corporate earnings data captures some bright spots for consumers in China on the back of achieving strong financial results in a competitive market where people are less willing to spend money.

“JD”,”Tencent” and”Alibaba” this month announced results for the three months ending in June, which indicated a steady recovery in consumer spending in that quarter.

“JD” achieved an increase in electronics and household appliances revenue by 11.3% to 152.13 billion yuan (20.98 billion dollars) in the three months ended in June. But the revenue of general goods decreased by 8.6% from last year to 81.72 billion yuan. Marketing revenue increased by 8.5% to 22.51 billion yuan.

“Tencent” witnessed a 150% year-on-year growth in the total value of goods sold in the second quarter of 2023. Advertising revenues in all categories, with the exception of automotive, have increased by a factor of two compared to last year in recent weeks. Advertising sales increased by 34% to 25 billion yuan in the quarter ending in June.