CHINESE e-commerce giant Alibaba's US-listed shares dropped 10 per cent after the company slashed its sales forecasts sharply, citing sluggish growth in Chinese consumer spending, reports London's Financial Times.
Alibaba now predicts 20-23 per cent sales growth in 2022 compared to an earlier projection of 30 per cent after experiencing 'softer market conditions.'
Recent Chinese economic data have painted a gloomier picture of the country's growth prospects. Retail sales rose just 2.5 per cent year on year in August, far below economists' forecasts of a seven per cent increase and it is the slowest rise in 12 months.
Alibaba is also grappling with tougher competition from established rivals such as Pinduoduo and JD.com as well as newer upstarts, all of which are trying to steal market share. Maggie Wu, Alibaba's chief financial officer, said competitors were 'increasing investment to acquire users and show a high level of spending.'
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Alibaba now predicts 20-23 per cent sales growth in 2022 compared to an earlier projection of 30 per cent after experiencing 'softer market conditions.'
Recent Chinese economic data have painted a gloomier picture of the country's growth prospects. Retail sales rose just 2.5 per cent year on year in August, far below economists' forecasts of a seven per cent increase and it is the slowest rise in 12 months.
Alibaba is also grappling with tougher competition from established rivals such as Pinduoduo and JD.com as well as newer upstarts, all of which are trying to steal market share. Maggie Wu, Alibaba's chief financial officer, said competitors were 'increasing investment to acquire users and show a high level of spending.'
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