Chinese e-commerce company Pinduoduo (NASDAQ: PDD) closed trading on Tuesday at a record share price of USD 57.83 bringing the company’s market cap to USD 69.26 billion.
The pioneer of social-commerce in China now has a larger market cap than one of its major competitors, JD.com (NASDAQ: JD), which is the second-largest e-commerce player in China by transaction volume after Alibaba (NYSE: BABA).
Pinduoduo’s stock has been performing well in May, following a partnership with Gome retail, one of the largest home appliance chains in China.
The upsurge shows investors’ confidence in the fast recovery of China’s e-commerce and courier services, according to reports from 36Kr. In April, the couturier industry has fully recovered from the negative impact of the coronavirus pandemic, with 6.25 billion parcels handled, a year-on-year growth of 27%, according to the State Post Bureau.
Besides Pinduoduo, Alibaba and JD.com also saw 2.39% and 4.51% increases respectively in their stock prices on May 12.
The COVID-19 outbreak resulted in a disappointing first quarter for Chinese e-retailers as 10% fewer parcels were handled through January and February.
To boost sales in the post-quarantine era, online shopping sites all launched promotional events during the five-day-long Labor Day holiday in China. Cooperating with offline shopping groups, Pinduoduo gave away RMB 2.5 billion (USD 350 million) worth of coupons and cash subsidies to its users between May 1 and May 4.
The Shanghai-based company is scheduled to release its 2020 Q1 financial result on May 22.