Technology companies Alibaba and JD have yet to recover their 2019 to October 2023 stock valuations.

JD is an e-commerce company, one of China‘s leading B2C online retailers and a leading supply chain-based technology and services provider. 

This company generated total net revenues of RMB951.6 billion and RMB1.046.2 billion (US$151.7 billion) in 2021 and 2022, respectively. 

This company, too, incurred a net loss of RMB4.5 billion and posted a net income of RMB9.7 billion ($1.4 billion) in 2021 and 2022, in that order.

In turn, Alibaba Group is a Chinese company specializing in e-commerce, retail, Internet and technology.

Over the past 20 years, we seized two historic opportunities: e-commerce on China’s consumer-centric Internet and cloud computing on China’s industrial Internet.

Alibaba and JD

According to the U.S.-China Economic and Security Review Commission (USCC), recent regulations in China continue to enforce strict government oversight, particularly by the People’s Bank of China and the Cyberspace Administration of China (CAC). These agencies have been given significant authority to monitor and review the operations and business practices of major technology companies.

For instance, fintech arms of Ant Group and JD were required to restructure as financial holding companies. This restructuring introduced new regulatory capital requirements and placed both companies’ financial technology operations under the direct supervision of the People’s Bank of China.

In a separate action, the People’s Bank of China fined Ant Group $982 million (RMB 7.12 billion) in July 2023. This penalty was imposed due to a series of violations, including breaches of corporate governance and financial consumer protection laws as determined by the People’s Bank of China.