China has been looking to increase internal consumption to reduce the economy’s sensitivity to exports and those efforts appear to be paying dividends. While some data points indicate the Chinese economy and consumer spending are slowing, policymakers remain proactive. Alibaba accounts for 9.20% of CHIQ’s weight.
“Alibaba is the world’s largest e-commerce company, as measured by gross merchandise volume,” according to Barron’s. “Its technology infrastructure and marketing reach helps merchants around the globe to engage with customers online. Beyond e-commerce, the company has also built a superior ecosystem, including retail, digital media, payment, and cloud computing.”
Alibaba controls about two-thirds of China’s massive e-commerce market.
“China’s internet market has far more users than the U.S. has citizens, underscoring the heft of China’s e-commerce market,” reports InvestorPlace. “Importantly, internet penetration remains low in China compared to large developed markets, meaning there remains a significant runway for BABA stock and rival Chinese e-commerce players.”
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