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Shares in Pinduoduo have risen to more than half a month after a Chinese ecommerce group announced on Tuesday that it would provide $ 1.5bn in future payments to charities as it had paid its quarterly profits since it gave to the public three years ago.
Pinduoduo, which pledged to support agricultural activities until its contribution reached Rmb10bn, became the leading Chinese group to create the opportunity to make charitable donations amid the devastation of the sector.
Tencent announced last week that it would set aside Rmb50bn as a “popular program”, an announcement that followed President Xi Jinping’s call for promoting “common wealth” in the face of social inequality.
“Agriculture has always been very important to the company and Pinduoduo’s ideas as well [initiative] We have announced today as a way to help grow our agriculture and take care of rural areas, ”he said Chen Lei, Pinduoduo chair is a great chair.
“Investing in agriculture pays off for everyone because agriculture is a way to improve food and health, public health and environmental stewardship,” he added.
Pinduoduo’s American earnings rose by 22% and only closed $ 100 but the company warned that their first quarterly profits did not mean future profits.
Researchers also doubt that recent results represent a change for the company. Citi lowered the share price of the company from $ 168 to $ 140, while analysts also noted lower consumer expectations “between major competitions and promotions”.
Chinese stockpiles crashed in Hong Kong on Wednesday afternoon two days of intense gains. The Hang Seng Tech index, which follows some of China’s largest coastal groups including Alibaba, Tencent and Meituan, fell 0.1% on 2.5% Monday and gained more than 7% on Tuesday.
Shares in Alibaba, whose shares in Hong Kong fell 2% on Wednesday, have dropped by 30% this year, while Tencent’s stock has fallen nearly 16%. Sessions at Pinduoduo fell 44% in 2021.
Shares in New Oriental Education, which has seen its stock drop by about 84% this year in Beijing banned teaching companies from making a profit, it saw its shares rise to $ 0.45 on Tuesday, reflecting a quarter-over profit on sales in New York.
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