Price War Hits to China Corporate Profits Confirm Investor Fears

Two of China’s corporate heavyweights JD.com Inc. and Geely Automobile Holdings Ltd. have revealed the scope of the earnings impact they’re having from brutal price competition, and investors are hitting the sell button.

Shares of JD.com slid as much as 4.5% in Hong Kong after the online retailer reported quarterly profit halved from a year ago. Electric-vehicle maker Geely’s stock tumbled nearly 6% on a drop in net income before erasing the loss. Respective rivals fell in sympathy, and the Hang Seng China Enterprises Index sank 1.5%.