There has been immense article of pessimism written over the past few years regarding Chinese economic slowdown. We also contributed to that mass.
However, it's time for some optimism.
Alibaba's result released today, posed some doubts over the slowdown in Chinese economy. Even if China's economy is slowing down, Alibaba's result is providing glimpse of hope. Alibaba, listed in US but dominates on-line retail market in China, with around 80% share.
Alibaba's revenue jumped 32% in the last quarter according to the filing. The growth however, slower, when compared to 79% growth rate two years ago, nevertheless commendable seeing in the back of weak Chinese economy.
Total Gross merchandise value sold on its retail platforms like Taobao and Tmall - jumped 23 per cent to Yuan 964 billion ($149 billion) for the December quarter. Revenue for the period jumped to Yuan 34.5 billion and net income more than doubled to Yuan 12.4 billion.
Although, some of the glamour in Alibaba's sales was due to more on-line purchase by Chinese consumers, but it surely points that Chinese economy, especially the retail segment is not a dead cold fish.
Recent official data also pointed that, China's retail sales growth of 2015 stand above 11%.
As Chinese economy shift more from export and capital intensive to consumption oriented, consumer would help improve the GDP figure.
