Alibaba and JD: stock valuations

Technology companies Alibaba and JD have yet to recover their 2019 to October 2023 stock valuations.

JD is an e-commerce company, one of China‘s leading B2C online retailers and a leading supply chain-based technology and services provider. 

This company generated total net revenues of RMB951.6 billion and RMB1.046.2 billion (US$151.7 billion) in 2021 and 2022, respectively. 

This company, too, incurred a net loss of RMB4.5 billion and posted a net income of RMB9.7 billion ($1.4 billion) in 2021 and 2022, in that order.

In turn, Alibaba Group is a Chinese company specializing in e-commerce, retail, Internet and technology.

Over the past 20 years, we seized two historic opportunities: e-commerce on China’s consumer-centric Internet and cloud computing on China’s industrial Internet.

Alibaba and JD

In context, the U.S.-China Economic and Security Review Commission (USCC) indicated that recent regulations maintain strict government oversight in China, particularly by the People’s Bank of China and the Cyberspace Administration of China (CAC), which have been empowered to closely monitor and review the functions and business practices of prominent technology companies.

For example, the associated fintech arms of Ant Group and JD were forced to restructure as financial holding companies, imposing new regulatory capital requirements on each company and placing both financial technology operations directly under the supervision of the People’s Bank of China.

In another action in using its powers to control major technology companies, the People’s Bank of China fined Ant Group $982 million (RMB 7.12 billion) in July 2023 for a series of violations, including what the People’s Bank of China determined to be violations of corporate governance and financial consumer protection laws.