Chinese giant of e-commerce JD.comThe company posted the slowest quarterly revenue growth in its history for the first three month of this year. This was due to Covid-19 lockdowns, which impacted consumer spending.

JD.com exceeded revenue estimates, but did not meet expectations for profit.

This is how JD performed in the first quarter 2022 compared to Refinitiv consensus estimates. 

• Revenue:239.7 trillion Chinese yuan ($37.8 Billion)Expected value of 236.6 billion Yuan, an 18% increase year-on-year
• Net loss attributable shareholders 3.0 billion yuan vs. 655.7 million yuan profit expected. Compare this to the 3.6 billion yuan net profits in that same period last years.

JD has experienced a slowest quarterly year-on–year revenue growth in its entire history as an open company.

JD.com shares, which were already higher in U.S. pre-market trade ahead of earnings, extended the rally after the company’s revenue beat, trading 7% higher.

Comparables were discovered in the three months prior to December 31st. AlibabaIt was reported slowest quarterly growth rateSince 2014,

Chinese tech giants face a host of challenges including Covid lockdowns in parts of ChinaShanghai was a major financial and economic center, which made it particularly difficult. It has had a negative impact on the economy. retail sales falling more than expected in March.

The major investment banks offer a wide range of services. cut their outlookFor China’s growth in gross domestic product for 2022, expect China to consume more.

China has increased regulation of the technology sector in China over the last 16 months. This includes areas from antitrust rulesTo data protection laws.

These factors have impacted Chinese internet stocks. Hang Seng Tech IndexThis includes titans such as TencentAlibaba’s Hong Kong shares, down approximately 46% during the previous year.

However, there is evidence that China’s clampdown on the tech industry may be slowing down.

China’s Politburo was inaugurated in April by President Xi Jinping. pledged supportThe so-called platform economy refers to businesses that offer services online via social media and e-commerce.

In the meantime, NikkeiAccording to reports, senior Chinese officials will meet with technology executives Tuesday. This adds fuel to the belief that regulatory tightening could ease.

JPMorgan analysts Monday upgraded their outlook on some Chinese internet stocksAccording to them, “significant uncertainty should be alleviated by recent regulatory announcements.”

This Tuesday Chinese tech stocks ralliedThe back of the JPMorgan note.