BABA, JD, PPD Drop Overnight As China Reprimands E-com Giants Over Misleading Ads

Beijing believes the internet giants’ aggressive price-cutting campaign could push retailers across China into losses, potentially undermining the economy.

• BABA led the declines, falling 5.3%; the stock has declined sharply in recent months due to a host of factors.
• China’s State Administration for Market Regulation summoned executives from the firms over what officials said was false advertising during the annual “618” midyear online shopping fest.
• Stocktwits retail sentiment for BABA, JD, and PDD remained ‘bearish.’

Shares of Chinese e-commerce companies Alibaba Group, JD.com, and PDD Holdings declined in overnight trading ahead of Thursday, tracking declines in their Hong Kong shares after a Chinese regulator reprimanded them for misleading advertising.

BABA stock declined 5.3%, while JD stock fell 3% and PDD stock fell 1.5%. The move follows sharp declines in BABA and PDD shares in particular in recent months.

The Beijing branch of the State Administration for Market Regulation summoned the executives from the three firms, as well as from ByteDance and Xiaohongshu Technology, over what officials said was false advertising during the annual “618” midyear online shopping fest, Bloomberg reported on Thursday, citing a report by state television CCTV. 

China Pulls Up Online Platforms Again

The regulator reportedly blasted some of the companies for seemingly promising tens of billions of yuan in subsidies, according to the report, which added that both Alibaba’s Tmall and Taobao, as well as JD.com, failed to provide details of the actual subsidies given by the company and participating brands.

The campaign marks the latest clash between Chinese regulators and the country’s e-commerce giants. For months, Beijing has been trying to rein in a race-to-the-bottom pricing battle that has drawn some of the nation’s largest companies into bruising price wars, squeezing margins and eroding profits.

Chinese authorities believe the internet giants’ aggressive price-cutting campaign could push retailers across China into losses, potentially undermining the economy.

The market watchdog called out PDD, TikTok-owner ByteDance and Xiaohongshu for disingenuous promotions during the sale event.

Retail View, Stock Move For BABA, JD, PDD

Alibaba shares have come under pressure in recent months due to a combination of slowing growth in China’s consumer economy, intensifying competition from rivals PDD and JD.com, which has led to persistent price wars, and investor concerns over weak consumer spending and broader economic uncertainty in China. 

BABA stock has shed about 40% from its peak last October and is down 22% in 2026. PDD stock is down 28% year-to-date, while JD is nearly flat.

On Stocktwits, the retail sentiment for BABA, JD and PDD remained ‘bearish,’ unchanged over the last several days. Message volume for BABA and PDD surged 200% and 100%, respectively, over the past month, suggesting investors are eyeing the stocks for potential trades. Message volumes for JD declined.

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