New | Alibaba’s robust Singles Day sales not enough to spark China’s retail market

Alibaba blew away all expectations with a record-breaking 91 billion yuan (HK$110.6 billion) in online sales on Singles’ Day amid a bleak picture of China’s economy.

But experts cautioned it does not necessarily mean a boom for China’s retail market, and the nation’s economic slowdown still remains as the biggest underlying worry for the sector in the longer term.

Alibaba recorded that the value of goods transacted on its online platforms on November 11 hit 91.2 billion yuan, surging 60 per cent from the same day last year.

But investors seemingly can’t wait to dump the stock, as shares of the e-commerce giant retreated for three straight days in New York by up to 7 per cent, compared with a 3 per cent drop in the Dow Jones Industrial Average in the same period. Even Alibaba’s rivals in the e-commerce sector suffered as well.

Alibaba closed at US$75.85 in New York on Friday last week. This year, the stock has tumbled 27 per cent. Rival JD.com also dropped more than 5 per cent in the three-day period through Friday. Online discount retailer Vipshop Holdings dived 27 per cent on Friday to its lowest level in 1-1/2 years as it cut its revenue guidance for the third quarter.

Appaloosa Management LP, a US-based hedge fund headed by billionaire investor David Tepper, has sold off its 1.36 million shares in Alibaba Group since June, a US regulatory filing showed on Friday.