China’s internet titans are set to supply ample evidence that online spending continues to defy a slowdown in the world’s second largest economy. Tencent Holdings and Alibaba Group should both report 40%-plus sales growth when they deliver quarterly earnings this week, outstripping Amazon and Alphabet. With market values of more than $300 billion each, the Chinese companies are now their nation’s biggest, underscoring the rise of the new economy as traditional industry sputters. The wealth of the middle class is fueling growth in core businesses even as Alibaba and Tencent funnel billions into longer-term bets on Hollywood-style entertainment and web finance. Tencent’s revenue is projected to rise 45% to 46.3 billion yuan ($6.7 billion) in the March quarter, the average of analysts’ estimates compiled by Bloomberg. Alibaba’s sales could climb 48% to 35.9 billion yuan.
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