First Read: China Internet Sector "E-com channel checks: 618 on track wi..."

研报英文原文证据摘录

First Read: China Internet Sector "E-com channel checks: 618 on track wi..."

Global Research

18 June 2026ab

First Read

EquitiesChina Internet Sector

E-com channel checks: 618 on track with China

subsidy discipline Internet Services

Kenneth Fong

Analyst

kenneth-kc.fong@ubs.com

Growth: Expected MSD% range from our channel checks +852-3712 3890

Sector growth: Based on our channel checks with multiple e-com merchants, we Sardonna Fong

estimate 618 online retail sales YoY growth within MSD% range, accelerating from NBS Analyst

online physical goods sales of Apr +0.2%, but slightly slower than 1Q's +5.7% (Figure sardonna.fong@ubs.com

1). This also aligns with the trend in parcel pick-up volume (Figure 2). We believe the +852-3712 3042

growth appears more evenly distributed across May-Jun, contrasting with the sales Wei Xiong

concentration observed in May 2025. Nevertheless, growth momentum during Analyst

promotional periods vs regular daily sales has softened, largely due to diminished S1460518100005

consumer engagement amid an extended promotion cycle. By category: Discretionary wei.xiong@ubs.com

spending remains subdued, particularly in apparel and cosmetics. Relatively, sportswear, +86-21-3866 8883

emotionally-driven and AI-related products outperformed the broader sector. By

platform: From our checks, BABA should have grown largely in line with the sector.

Douyin and PDD continued to gain share, albeit at a more moderate pace. JD

experienced slower growth due to a challenging YoY comp, but general merchandise

(GM) growth should have remained resilient. Tencent Video Accounts and Xiaohongshu

exhibited robust growth as new complementary channels.

Sector trends: Profitability as focus for both platforms and merchants