Alibaba Smashes Singles’ Day Record with $84.5 billion

 Alibaba Smashes Singles’ Day Record with $84.5 billion

Alibaba Smashes Singles’ Day Record with $84.5 billion.

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China’s e-commerce giant Alibaba posted record sales for its Singles’ Day Shopping festival, which reached 540.3 billion yuan ($84.5 billion). Alibaba Singles’ Day is the world’s largest shopping event which lasts for a total of 11 days and is even an unofficial holiday in China. Since its debut in 2009, it has outpaced Black Friday and Cyber Monday in size and intensity.

Following the company’s strong performance, Alibaba’s U.S.-traded shares closed 2.4% up on Thursday, as Bloomberg reports.

The last year hasn’t been easy on the Chinese technology titan. Concerned that certain companies were abusing their dominance on the market, the government has enforced a campaign against its most powerful corporations and a crackdown that has erased $1.5 trillion from Chinese stocks, according to Bloomberg. After targeting Alibaba with regulatory scrutiny, the Beijing government went after other well-known companies such as Tencent Holdings Ltd and  Didi Global Inc. Alibaba was hit with a $2.8 billion antitrust fine which resulted in a 30% slump in Alibaba shares this year and its first revenue miss in two years.

However, Its strong performance during the Singles’ Day festival was an opportunity to restore faltering investor confidence.

Apart from setbacks caused by regulatory scrutiny, the Chinese economy is facing other problems too, as its growth outlook is losing momentum. For starters, ongoing power shortages have affected its large manufacturing industry. At the same time, ten big banks have cut their growth forecasts, according to CNBC, facing problems such as lower consumer spending, indebted real estate developers and disruptive floods.

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