China’s web giants expected to post sales growth above 40%

HONG KONG (May 17): 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 Ltd. and Alibaba Group Holding Ltd. -- the dominant forces in Chinese online gaming and shopping, respectively -- should both report 40%-plus sales growth when they deliver quarterly earnings this week, outstripping Amazon.com Inc. and Alphabet Inc. With market values of more than US$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 scored a hit with new mobile title Honor of Kings, while Alibaba likely benefited from the steady expansion of its Tmall shopping site. Tencent’s revenue is projected to rise 45% to 46.3 billion yuan ($9.4 billion) in the March quarter, the average of analysts’ estimates compiled by Bloomberg. Alibaba’s sales could climb 48% to 35.9 billion yuan.

---

Related Stories

• Alibaba anoints new chief in revamp of stalling commerce arm
• What's gone wrong with e-commerce? A look at Alibaba's Lazada, TikTok Shop and PDD's Temu
• Are online shopping seasons past their prime?

---