Alibaba shares hold up in face of Trump threats

(Reuters) - Shares in Chinese online retail giant Alibaba ground out gains on Monday as profits for smaller peer JD.com buoyed expectations for its own results later this week, countering hint of more U.S. moves against it and other Chinese companies. At a news conference on Saturday, when asked if he was considering a ban on other Chinese-owned companies including Alibaba to follow that on social video app TikTok, U.S.

Reuters August 18, 2020 01:06:03 IST
Alibaba shares hold up in face of Trump threats

Alibaba shares hold up in face of Trump threats

(Reuters) - Shares in Chinese online retail giant Alibaba ground out gains on Monday as profits for smaller peer JD.com buoyed expectations for its own results later this week, countering hint of more U.S. moves against it and other Chinese companies.

At a news conference on Saturday, when asked if he was considering a ban on other Chinese-owned companies including Alibaba to follow that on social video app TikTok, U.S. President Donald Trump said: "Well, we're looking at other things, yes."

The White House has been piling pressure on Chinese-owned entities in the run in to elections this year and financial markets are watching closely for signs of whether it will lead to further tit-for-tat moves that could hamper a global recovery.

A number of analysts stressed that Alibaba's so far minimal presence in U.S. markets - it gets only 7% of revenue from sales outside China - may insulate it more than TikTok owner Bytedance from any U.S. attack.

After a weak start, shares in Alibaba rose 0.8% in a rising New York market.

"Obviously it will have some effect, we could see a decrease in Alibaba's stock price," said Luke Lloyd, wealth adviser and investment strategist at Strategic Wealth Partners.

"But a lot of investors right now don't think there is going to be a lot of bite (from Trump). The company is growing, it is cheaper than its competitors like Amazon and we view (it) as the Amazon of China so there is immense growth potential."

Alibaba is set to report results on Thursday with analysts expecting the company to benefit from increasing online sales in China in June, although there are nerves about its forecast following unexpectedly poor Chinese retail sales numbers last week.

JD.com beat analysts' estimates for quarterly revenue on Monday, as more customers used its online platform to shop for groceries and other essentials in the face of the COVID-19 pandemic, sending its shares up 5%.

(Reporting by Susan Mathew in Bengaluru; Editing by Maju Samuel)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.