Alibaba and JD.com shares have soared during China’s major annual shopping event, the 618 Shopping Festival.

Alibaba’s stock rose 3.4% on the New York Stock Exchange, while JD.com gained 2.6% on Nasdaq.

This increase is attributed to a surge in sales of electronics and home appliances thanks to government subsidies aimed at boosting consumer spending.

For example, sales of subsidized products on Alibaba’s Taobao and Tmall increased by 283% from May 13 to 26 compared to last November’s Singles’ Day festival.

JD.com reported a 380% rise in electronics sales within the first hour of its campaign launched on May 30, compared to last year.

Originally started to celebrate JD.com’s founding day on June 18, the 618 Shopping Festival has grown into a large-scale event with participation from multiple big e-commerce companies across China, similar to Amazon.

The event coincides with China’s government electronics exchange subsidy program running until 2025, which offers up to 2,000 yuan (about 280,000 won) rebate per item.

This helped boost consumer purchases of high-priced products such as smartphones, TVs, and refrigerators, significantly driving sales growth.

Alibaba highlighted that the government subsidies have been highly effective in increasing sales.

Among various brands, major companies like Apple, Xiaomi, Huawei, Midea, and Haier each recorded sales exceeding 100 million yuan (about 14 billion won), standing out prominently.

However, Alibaba also faces regulatory risks amid geopolitical tensions between the U.S. and China.

Reports indicate that the AI collaboration project between Alibaba and Apple is delayed in the review process by China's Cyberspace Administration (CAC).

Both companies are awaiting AI product approvals this year, but the increased regulations caused by U.S.-China trade tensions have slowed the approval pace.

Nonetheless, investors remain optimistic about both companies’ sales outlooks thanks to strong sales performance and government support, keeping their stock prices steady.