The Chinese e-commerce giant Alibaba suffered an unexpected loss of 2.7 billion euros in the third quarter, from July to the end of September. The company was affected by the strict anti-Covid policy of the Chinese government.
The group’s turnover increased by a smaller-than-expected 3 percent to 207.2 billion yuan. Turnover still stagnated in the second quarter.
On the latest ‘Singles Day’ on November 11, an important shopping day in China, Alibaba’s turnover was in line with last year. But the smaller JD.com did see its market share increase. Alibaba’s expansion is slowing in markets outside China.
Due to the strict measures in the event of an infection with Covid-19 in China, less is consumed. However, for Alibaba, this policy also creates logistical problems.
In recent weeks, there have been signs of an easing of policy, which has benefited the share prices of tech companies. In addition, improving relations with the US is fueling optimism.