The Alibaba Group (BABA) signaled on Thursday that the Chinese economy enjoys a strong pillar of support: online shoppers.
This news from Alibaba came despite concerns of many investors about China’s rising debt and bloated state industries.
The Chinese e-commerce giant said Thursday that it expected revenue for its current fiscal year to grow at a much higher rate than analysts had forecast. It expects growing sales volumes on its online marketplaces. Furthermore, there is even stronger surging demand by merchants for its digital ad space.
Alibaba’s forecast illustrates the power of China’s vast and cutting-edge online culture. The government strictly controls political content and entertainment. Nevertheless, China has evolved into the world’s largest group of internet users. They comfortably shop, transfer money, invest and even rent bicycles with the tap of a smartphone. Online shopping has been a bright spot. This even though economists worry about China’s rising corporate debt and overcapacity in its old-line industries.