Here we go again—people who buy into China concept stocks are all unfortunate. Today, the index is once again falling.
You think the China concept stocks have finally bottomed out, but PDD just pulls another trick on you in the opposite direction. On August 10, the PDD app homepage added a new “fastest tomorrow delivery” Level 1 entry, alongside “Billion Subsidy.” For fresh produce and daily necessities, delivery to core cities is “tomorrow,” with a 3-yuan coupon as compensation if it’s late. Translate this: PDD has officially moved into instant retail, and the backyards of Alibaba, Meituan, and JD.com are on fire.
Then on August 11, China concept stocks collectively plunged. For anyone holding China concept stocks—congratulations, you’re getting burned again, the kind that really hurts.
These companies never seem to rest. First it was “Billion Subsidy,” then it was instant retail. One company creates a track, and everyone else rushes in. There’s basically no differentiation at all—just vicious competition. You fight your price war, I burn my subsidies, and all the profit evaporates into delivery fees and discount coupons.
In the first quarter, PDD’s transaction services revenue exceeded advertising revenue for the first time. What does that mean? It’s moving toward a heavy-asset direction—warehousing, fulfillment, and logistics all require large investments. Over 150 shared warehouse nodes have already been laid out, and this time it’s directly pushing “fastest tomorrow delivery” into the homepage’s top-level entry.
For consumers, this is a good thing. For shareholders? Yet another battle of attrition.
You think the bad news is over? No. There will never be an end.
The fate of China concept stock holders is misery. When you buy, you think you’ve caught the bottom—until you hold it and realize there’s still another bottom below that. Damn it.
You think the China concept stocks have finally bottomed out, but PDD just pulls another trick on you in the opposite direction. On August 10, the PDD app homepage added a new “fastest tomorrow delivery” Level 1 entry, alongside “Billion Subsidy.” For fresh produce and daily necessities, delivery to core cities is “tomorrow,” with a 3-yuan coupon as compensation if it’s late. Translate this: PDD has officially moved into instant retail, and the backyards of Alibaba, Meituan, and JD.com are on fire.
Then on August 11, China concept stocks collectively plunged. For anyone holding China concept stocks—congratulations, you’re getting burned again, the kind that really hurts.
These companies never seem to rest. First it was “Billion Subsidy,” then it was instant retail. One company creates a track, and everyone else rushes in. There’s basically no differentiation at all—just vicious competition. You fight your price war, I burn my subsidies, and all the profit evaporates into delivery fees and discount coupons.
In the first quarter, PDD’s transaction services revenue exceeded advertising revenue for the first time. What does that mean? It’s moving toward a heavy-asset direction—warehousing, fulfillment, and logistics all require large investments. Over 150 shared warehouse nodes have already been laid out, and this time it’s directly pushing “fastest tomorrow delivery” into the homepage’s top-level entry.
For consumers, this is a good thing. For shareholders? Yet another battle of attrition.
You think the bad news is over? No. There will never be an end.
The fate of China concept stock holders is misery. When you buy, you think you’ve caught the bottom—until you hold it and realize there’s still another bottom below that. Damn it.