The JD.com sign can be seen at the World Internet Conference in Wuzhen Reuters
JD.com, a Chinese e-commerce company, reported earnings Tuesday by 16.6%.
Record 32 million users fueled 26% increase in second quarter revenue year-over-year.
Investors were reportedly returning to Chinese tech with large-name investors such as Cathie Wood purchasing the dip.
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JD.com, a Chinese e-commerce company, jumped 16.6% in Hong Kong Tuesday after it reported record user growth. It also escaped the worst of Beijing’s regulatory crackdown.
The stock was listed on the Hong Kong stock market and soared to $284 from $243.60 the day before.
Analyst expectations were exceeded by second-quarter revenue, which was more than 26% above the year-ago. This growth was driven by record 32 million users, which brought the total to more than 530 million. Due to increased marketing and administrative expenses, profits dropped sharply.
Chinese companies have been suffering for months from a series of strict regulations that restrict sectors such as tech and school tutoring. JD.com executives played down the long-term effects of the government's campaign during the company's earnings conference.
"I believe that you all have paid attention to the recent regulatory changes and may be concerned," stated Xu Lei CEO of JD's Retail Division. "These policies are not meant to restrict or suppress the Internet or relevant industries, but to create a fair business environment."
"We believe that JD's regulatory goals are conducive for long-term business growth," Xu said.
On Tuesday, some international investors were seen returning to Chinese tech stocks. Cathie Wood and other big-name investors bought the dip. After the earnings call, Wood's Ark Autonomous Technology & Robotics ETF purchased nearly 165,000 shares of JD.com stock.
Andy Maynard, an investment banker at China Renaissance, stated that he felt a strong tilt towards global, long-term investors buying [Chinese tech share] for the first time in months.
Alibaba and Tencent also saw an increase of more than 9% & 8% on Tuesday.
Despite Tuesday's rally, it was not enough to compensate for the losses that Chinese tech stocks took this year. Tencent, Alibaba and JD.com were still at 16%, 28% and 18%, respectively, at Tuesday's closing prices.
JD.com shares closed at $36 in Hong Kong dollars (equivalent to 280 Hong Kong Dollars).
