JD.com (09618.HK) saw its stock price surge 6.84% in intraday trading, as investors showed optimism ahead of the company's first-quarter earnings report and reacted positively to a new US-China trade agreement. The Chinese e-commerce giant's shares rallied amid a broader uptick in Chinese stocks and ADRs.
JD.com is set to release its Q1 2025 financial results on Tuesday. Analysts are expecting strong performance, with FactSet's consensus estimate projecting a 24% year-over-year increase in net profit to 8.87 billion yuan ($1.23 billion). Revenue is anticipated to reach 287.35 billion yuan, up from 260.05 billion yuan in the same period last year. The company's solid revenue momentum is attributed to the Chinese government's trade-in program and strong demand for electronic devices such as smartphones and computers.
Adding to the positive sentiment, the United States and China have agreed to significant reductions in tariffs for a 90-day period. This development has sparked a rally among Chinese stocks and ETFs, with some seeing gains of up to 9%. The agreement is expected to ease trade tensions and potentially benefit companies like JD.com, which has limited exposure to cross-border sales and could gain from increased domestic consumption if Beijing implements further stimulative measures.
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