<div id="readability-page-1"><p>Wednesday was a good day for investors to be holding Chinese e-commerce stock <strong>Alibaba</strong> <span>(BABA<span> 3.98%</span>)</span>. Internal company data showed that the massive shopping holiday currently underway in China is proving to be quite lively this year.</p> <p>Investors greeted this news happily, sending the company's U.S.-listed equity nearly 4% higher on the day. That compared favorably to the essentially flat performance of the <strong>S&amp;P 500</strong> <span>(^GSPC<span> 0.01%</span>)</span>.</p> <h2>The 411 on 618</h2> <p>The 618 shopping festival in China is an event held every June, created by Alibaba peer<strong> JD.com</strong> to commemorate that company's founding date of June 18. It has effectively been co-opted by other big Chinese retailers, Alibaba included. During the 618 period, online retailers offer a dizzying number of deals and discounts to shoppers.</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjA2MzYvcGVyc29uLXJlYWN0aW5nLWpveWZ1bGx5LXRvLXNvbWV0aGluZy1vbi1hLXNtYXJ0cGhvbmUuanBnJnc9NzAw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjA2MzYvcGVyc29uLXJlYWN0aW5nLWpveWZ1bGx5LXRvLXNvbWV0aGluZy1vbi1hLXNtYXJ0cGhvbmUuanBnJnc9NzAw"/></p><p>Image source: Getty Images.</p> </div> <p>It seems the 2025 version is shaping up to be very robust, according to preliminary data from Alibaba domestic e-commerce business Taobao and Tmall Group, cited by <em>The South China Morning Post</em> -- also owned by Alibaba. </p> <p>The data show that sales of categories covered by current government subsidies rose by 283% in the so-called &#34;initial checkout period&#34; stretching from May 13 to May 26, compared to a similar stretch of time in 2024's Singles' Day (Alibaba's own shopping holiday).</p> <p>Meanwhile, the newspaper reported, JD.com's sales of home appliances and electronics saw a 380% year-over-year surge in only the first hour of its 618 campaign, which launched on May 30.</p>  <h2>The subsidy effect</h2> <p>The Chinese government isn't afraid to throw heavy state support into efforts to bolster economic growth. Its latest subsidy program targets home appliances and related products, and if those early data indicate a trend, 618 will provide quite a lift to not only Alibaba, but any large or small Chinese online retailer selling its wares during the event.</p>                                                                            </div>

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<p>On Wednesday, Alibaba's stock rose nearly 4% as internal data indicated a strong performance during China's 618 shopping festival. This event, initiated by JD.com, has seen significant sales increases, with Alibaba's Taobao and Tmall reporting a 283% rise in government-subsidized categories compared to last year's Singles' Day. JD.com also experienced a 380% surge in home appliance sales in the first hour of its campaign. The Chinese government's subsidy program is expected to boost sales for Alibaba and other online retailers during this period.</p>

- Investors in Alibaba (BABA) saw a nearly 4% increase in stock value as internal data indicated a lively 618 shopping festival in China.  
- Preliminary data from Alibaba's Taobao and Tmall showed a 283% rise in sales during the initial checkout period compared to 2024's Singles' Day, while JD.com reported a 380% surge in home appliances and electronics sales in the first hour of its campaign.  
- The Chinese government's subsidy program is expected to significantly boost sales for Alibaba and other online retailers during this event.

Why Alibaba Stock Was a Winner on Wednesday