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Shares of Chinese home appliance makers are trading higher on Monday, with an index tracking the sector up 3% for now, making it one of the best-performance sector in the A-share market so far today. Midea Group is gaining more than 4%, Hisense up 2.6%, and Gree Electric Appliance up more than 1.5%.
According to data from e-commerce platform Pinduoduo, home appliance sales on the platform during the 618 Shopping Festival surged 103% from the same period last year.
JD.com said its total sales during the shopping festival rose 10.3% from a year earlier to 379.3 billion yuan, marking a new record high, though the growth slowed from the 27.7% in the same period in 2021, marking the slowest rate for the retailer. Shoppers bought 379.3 billion yuan ($56.48 billion) worth of goods on JD.com over the period, it said on its official WeChat account.
Industrial Securities said in a note that, as disruptions to logistics ease and offline consumer activities gradually resume, demand for home appliance products are expected to rebound. SinoLink said in a note that the traditional high season for consumption of air conditioner and freezer is approaching and meanwhile, pent-up demand accumulated during the recent Covid outbreaks due to disruptions to logistics is expected to be released.
