TENCENT HOLDINGS ADR (OTCMKTS:TCEHY) suffered a bout of prolonged session yesterday and ended the last trading session with a loss of 2.53%. The volume of the day at 674,000 was a bit lower than the daily average of 851,000, reflecting the corrective nature of the intraday price action. The daily chart shows a gap in the previous session, which has been filled up now. Only the price action in the next session can provide the clarity if the decline is just a gap-filling operation or a larger correction. The proximity of the intermediate resistance just above $20 will not be any comfort for the bulls.
A growing partnership between TENCENT HOLDINGS ADR (OTCMKTS:TCEHY) And JD.Com Inc (ADR)(NASDAQ:JD) could start to challenge Alibaba’s dominance in Chinese e-commerce market in the next two years, as the leading companies in ecommerce segment intends to utilize November 11 Singles Day.
This year’s Singles Day event is shaping up as a competitive platform of many Chinese online shoppers. The leading companies are seeking to gain supremacy on November 11 as it has become the busiest day for online buying. Just days after ecommerce leader Alibaba announced its strategies to seduce shoppers, JD.com has announced its own counter scheme to attract China’s hordes in an association formed on its growing ties with Tencent.
The stakes this time are high as last year Alibaba fetched 278 million orders valued at $9.3 billion around the promotion of November 11, which represents the essence of singledom due to its mathematical representation as 11-11. JD didn’t provided revenue figure for its orders in 2014, but said it recorded 14 million orders, which probably would have translated to modest numbers.
The sales recorded on November 11 by leading firms including Alibaba still fell short of the projected sales during the famous Black Friday period in the U.S. This much awaited shopping extravaganza comes after Thanksgiving each year. The estimates are more than the estimated spending of $2 billion during the Cyber Monday event in the U.S. that comes on succeeding Monday after Thanksgiving.
JD.com and Tencent new collaboration intends to give direct competition to Alibaba, which manages online platforms populated by third-party sellers. Tencent has provided strong support to JD.com as the two firms together introduced a shopping platform on WeChat, which has over 500 million users. As of now, the two firms focus is on the upcoming November 11 shopping extravaganza and designing the ways to lure customers away from Alibaba.