EUR 227.93 For Business Accounts Only

JD: Better Than Expected Big Ticket Item Sales Driving Better 2Q23E Performance; Economic Stimulus Is Likely To Prolong Its Better Performance

We are positive on JD’s 2Q23 performance. The long-awaited economic stimulus policies have started to come out since late July 2023. On June 25th, the State Think Tank CMF released its paper “Solidifying Foundation for Recovery, China’s Macroeconomy in 2023” (/imeeting/hyt/detail/29925). The paper not only pointed out 5 main issues but also emphasized that these issues cannot be resolved by themselves and need state driven stimulus. We believe the paper has set up the direction for the stimulus. On July 24^th, the Political Bureau of the CPC Central Committee held a meeting analyzing the current economic situation and pointing out the direction and framework for economic stimulus. In the past week after this meeting, we have already witnessed the positive reaction in China’s market. We believe the stimulus is likely to provide a supporting floor to consumption growth in China.