Investors Reward PDD for Winning Crown in China Online Price War
- Shares of PDD’s ADRs are trading at record vs JD.com, Alibaba
- PDD to win price war thanks to low pricing strategy: Analysts
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Budget shopping app Pinduoduo has emerged as a clear winner in an intensifying price war in China as e-commerce companies fight for market share amid a pullback in consumer spending.
Investors have noticed: Shares of parent PDD Holdings Inc. are trading at a record high compared to rivals Alibaba Group Holding Ltd. and JD.com Inc. The gap has widened recently even after JD.com announced a $1.4 billion subsidy program to compete with Pinduoduo. PDD’s American depositary receipts have gained 12% this year, compared with a 7.9% drop in Alibaba and a 30% slump in JD.com.