Tencent, Alibaba Earnings Hold Key to $44 Billion China Tech Run
- Strong gaming sales boost performance of Tencent, NetEase
- Lackluster consumption recovery weighs on Alibaba, JD.com
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Financial results from Tencent Holdings Ltd. and Alibaba Group Holding Ltd. will likely test the strength of a $44 billion rally in China’s technology sector this month.
As the country’s major tech firms start reporting third-quarter earnings this week, expectations are for Tencent to show strong growth given cost reductions and a friendlier regulatory climate for gaming that also benefits rival NetEase Inc. Alibaba, however, likely continued to suffer from a broader consumption slowdown that pressured competitor JD.com Inc. too.