China’s tech industry’s winning streak this season continued the austerity theme amid ongoing economic uncertainty. Such fiscal discipline is what shareholders want to hear, but it doesn’t do much to help Beijing policymakers, who rely on the country’s giants to keep hiring and spending.
The results of Tencent Holdings Ltd., Alibaba Group Holding Ltd. and JD.com Inc. weren’t bad, although their stock reaction suggests investors weren’t impressed. Both posted sales growth and increased profits in the June quarter. But the way they’ve improved their bottom line should worry those hoping for a rebound in consumer spending to kickstart China’s broader economic woes.
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