China'S Consumer Economy Has Successfully Taken Off?

In the context of China's weak macroeconomic data, the brilliant performance of Alibaba's three quarter financial results not only helped the company's share price refresh its 2 month high, but also verifies the true situation of China's economic pformation from side to side.

Mccarthy senior partner Jonathan Woetzel believes there is enough evidence to prove that China's consumer economy has successfully taken off.

Alibaba group's 2015 quarter three figures released in October 27th showed that the quarter's revenue was 22 billion 200 million yuan, up 32% from the same period last year, which is better than the expected 21 billion 300 million yuan.

Profit, revenue, GMV data are fully expected, and the Tmall platform has increased by nearly a hundred billion.

At the same time, Ali mobile terminal grew rapidly, turnover increased nearly three times, mobile terminal revenue also increased by 183%.

Consumption of new technologies and new ways has become the preferred choice for Chinese residents. Alibaba mobile monthly active users have increased by 39 million in the single quarter. Mobile monthly active users account for 6 of China's mobile Internet users, with annual active buyers reaching 386 million, up 18 million over the previous quarter.

Ali's mobile income increased by 183% over the same period last year.

Statistics released by the Statistics Bureau show that China's GDP grew by 6.9% in the three quarter, the lowest level in the 1 quarter of 2009.

China's railway freight volume listed in the "strong index" decreased by 11.4% compared with the same period in 1-9 months, and 10.9% in 1-8 months.

In September, the total freight volume of the national railway was 2.7 million tons, down 15.6% from the same period last year, and the decline was further expanded compared with August (15.3%).

Meanwhile, retail sales in September increased by 10.9% over the same period last year, the highest growth rate this year.

In the first three quarters, the contribution rate of final consumption expenditure to GDP growth was 58.4%, an increase of 9.3 percentage points over the same period last year.

According to Goldman Sachs analysts, there are two kinds of commodities: one is the massive commodities needed for large-scale industrialization such as iron ore and cement. In the past thirty years, China's demand for such commodities has increased significantly. Goldman Sachs claims that they are capital expenditure (capex) commodities; another type of opex, such as gasoline and coffee, is that the consumption growth of such goods reflects the increase of the national wealth and the increase in food and leisure travel.

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Mark Mobius, an investor, also believes in China's direction.

The shift in consumer services will bring more sustainable development, though this may not be applicable to stock market investors.

Cai Chongxin, vice chairman of Alibaba group, said at a conference call after the earnings report that the short-term slowdown in China's economy will not have a substantial impact on the consumption pattern.

Alibaba Chairman Ma Yun said in a previous letter to the stock exchange that the market was overreacting to the slowdown in China's economy.

He thought that

Slowing down will not affect consumption.

It is worth mentioning that the latest Apple Corp's fourth quarter financial report also showed that the slowdown in economic growth did not cause Chinese consumers to decline in demand for Apple products.

Although the sales volume of US $12 billion 500 million declined by 5% compared with the US $13 billion 200 million in the previous quarter, the figure increased by 99% compared with the same period.

Among them, iPhone sales in China surged by 87%, helping Apple achieve more than analysts' expected $1.96 earnings per share.

Apple CEO Cook said, "just looking at Apple's own sales data, I really can not see any economic problems in China.

China's economic challenges have not brought any impact on apple, and believe that China will eventually become Apple's largest market. Apple's official retail store in China will increase from 25 to 40 next year.

Mccarthy senior partner Jonathan Woetzel believes that there is enough evidence to prove that China's consumer economy has successfully taken off.