Rising domestic spending power is expected to boost China’s big technology companies

February 14, 2018
Industry News
Content Provided By:

Sarah Dai
[email protected]

Online shopping, gaming, video streaming as well as new retail to fuel growth

China’s big technology companies are on track for strong growth, earning results posted over the past few weeks have shown.

Banking on the country’s rising spending power, Alibaba Group Holding and NetEase have ploughed money into new retail and entertainment, while Baidu has bet big on artificial intelligence and autonomous cars.

Weibo, China’s answer to Twitter, pocketed 80 per cent more in advertising revenue from small and medium-sized companies in the fourth quarter compared with the same period a year ago.

In a month from now, Xunlei and JD.com are expected to announce their fourth quarter and annual earnings results. Tencent is also expected to deliver its full-year performance on March 21.

Here are three trends to expect from China’s big technology companies as the year unfolds.

Robust online shopping

China had 506 million mobile shoppers by the end of last year, a 14.7 per cent increase over 2016, according to a report in January by the government-run China Internet Network Information Centre. That means more than one in three Chinese consumers made purchases through mobile shopping apps.

Coincidentally, Alibaba, which owns the South China Morning Post, posted a 57 per cent year-on-year increase in its core e-commerce revenue, which rose to 73.24 billion yuan (US$11.26 billion) in the December quarter, while NetEase reported that its e-commerce revenue had surged by 1.75 times to 4.65 billion yuan. Continue Reading

The South China Morning Post is a leading news media company that has reported on China and Asia for more than a century with global impact. Founded in 1903, SCMP’s headquarters are in Hong Kong, where it is the city’s newspaper of record. Our teams span Asia and the United States, working together to connect with news consumers around the world. We are committed to informing and inspiring through journalism of the highest standards. 

Against the backdrop of shifting discovery and consumption behaviour, SCMP reaches users across distributed media platforms such as SCMP.com, smartphone and tablet apps, social media and messaging platforms, as well as our flagship newspaper. ​In addition to the South China Morning Post broadsheet, we also publish the Sunday Morning PostPost MagazineSTYLE and This Week In Asia​​SCMP.com, attracts millions of readers and generates tens of millions of page views per month, providing a perfect channel for our advertisers to reach a worldwide audience.

For further information, please contact us