Chinese stocks, including those of Alibaba, JD.com, and Tencent Holdings, experienced a decline in trading on Tuesday, despite the country’s economy rebounding at a faster rate than anticipated in the first quarter. According to reports, China’s gross domestic product (GDP) grew by 4.5% in the first three months of the year, surpassing the 3.4% growth predicted by FactSet economists.
However, investors were hesitant about the overall economic data, with industrial output not meeting expectations, and fixed asset investment growth unexpectedly slowing down to 5.1% in March. Alibaba’s stock fell by 0.8%, JD.com’s slipped 1.5%, while Tencent Holdings’ fell by 2% in Hong Kong trading.
Craig Erlam, an OANDA analyst, said that other data released on Tuesday highlights how uneven the recovery has been. Retail sales rose by 10.6% in March, exceeding expectations for a 7.5% increase as Chinese consumers played a significant role in boosting the economy.
However, Erlam noted that the fixed asset investment and industrial production figures were less impressive and fell short of expectations, demonstrating the challenges that China’s economy may face this year.