By Ye Xie, Bloomberg Markers Live reporter and strategist
Shares of Temu-owner PDD Holdings plunged after the company’s earnings missed estimates by a wide margin. While PDD faces its own idiosyncratic issues, its plight also underscores a broader challenge facing China Inc.: Tough competition is driving down prices and squeezing margins.
PDD’s US depositary receipts tumbled as much as 18% after it posted net income of 14.7 billion yuan ($2 billion), missing analysts expectations of 25.7 billion yuan.
