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E-commerce platform Pinduoduo saw its US-listed shares rise by over 4 percent on Wednesday, continuing the previous day's upward trend. At one point it surpassed e-commerce giant Alibaba in market value, giving it the largest market capitalization among Chinese concept stocks.

The company's market capitalization reached as high as $192.3 billion during intraday trading, exceeding Alibaba's $191 billion in the US stock market.

It comes after Pinduoduo released its third quarter financial report on Tuesday, showing that its performance exceeded expectations amid the robust domestic consumption recovery. The company made revenue of 68.84 billion yuan, a whopping increase of 93.9 percent year-on-year and nearly doubling from 35.5 billion yuan.

The company's third quarter revenue also rose sharply from the second quarter's 52.281 billion yuan, surpassing market expectations.

Regarding the increase in revenue, Pinduoduo's co-CEO Zhao Jiazhen said that it was a combined result of the sustained improvement in the consumer environment and the high-quality execution of the company's development strategy, according to jiemian.com. The returns from the strategy have come faster than anticipated, Zhao said.

Moreover, with the implementation of a series of consumer stimulus policies, the demand for consumption upgrading is increasingly vigorous, according to Zhao.

Thanks to the comprehensive growth in the domestic consumer market in the third quarter and a series of promotional activities, various products on Pinduoduo, ranging from beauty and personal care to home appliances have all experienced varying degrees of growth. Among them, there was a continuing trend of increasing enthusiasm for domestic brands, according to media reports.

There has been speculation in the market that the company's results were also buoyed by the rapid growth of its overseas business unit, Temu.

Early on Wednesday, Alibaba's founder Jack Ma responded to market discussion about Pinduoduo approaching Alibaba's market value. He congratulated Pinduoduo on its decisions, execution, and efforts over the past few years, jiemian.com reported.

Leveraging the further improvement of the business environment and the recovery of consumption, Chinese e-commerce platforms are experiencing rapid growth.

Alibaba Group's financial performance announcement for the second quarter of the 2024 fiscal year (covering the three months until September 30, 2023) revealed quarterly revenue of 224.79 billion yuan, marking year-on-year growth of 9 percent. The operating profit for the quarter reached 33.584 billion, a year-on-year increase of 34 percent, stcn.com reported.

Global Times