Alibaba Group Holding’s (NYSE:BABA) online retail platforms Taobao and Tmall Group (TTG) have formed a new “digital technology” company with a registered capital of 10 million yuan ($1.4 million).
The new firm called “Hangzhou Taobao and Tmall Digital Technology Co” will focus on the import and export of goods; sales of food, daily groceries, outdoor products, and household appliances; and technology-related services such as software development and tech transfer, SCMP cites Chinese business registry platform Tianyancha.
Also Read: Alibaba Subsidiary Takes Majority Stake in Ant Group’s Bank Macao In Strategic Move to Enhance Digital Payment Services
In August, Alibaba’s fiscal first-quarter topline growth was 4% year-on-year to $33.47 billion, missing the analyst consensus of $34.81 billion. Taobao and Tmall Group revenue declined by 1% to $15.60 billion. Net income plunged 29% Y/Y to $3.34 billion.
E-commerce juggernaut Alibaba serves as a benchmark for Chinese consumer spending and economic vitality. The stock has lost over 13% in the last 12 months as the domestic crackdown, followed by weak consumer spending and intense domestic competition, took a huge toll.
Last week, China’s antitrust watchdog, the State Administration for Market Regulation, officially ended over three years of regulatory scrutiny of Alibaba. The country remains engaged in many activities to boost economic growth, including committing funds to build computing data centers and extending support to technology start-ups and the domestic electric vehicle industry.
Investors can gain exposure to Alibaba Group stock through Goldman Sachs Hedge Industry VIP ETF (NYSE:GVIP) and ProShares Online Retail ETF (NYSE:ONLN).
Price Action: BABA stock traded higher by 0.74% at $82.88 premarket at the last check on Wednesday.
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This article Alibaba’s Taobao and Tmall Launch New Tech Venture, Eyeing Global Market Growth originally appeared on Benzinga.com
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