JD.com Has An Involution Problem

  • JD.com boasts strong finances, solid earnings, and a low valuation, yet its stock price remains depressed due to China's challenging retail environment. Intense price competition and deflation in China are weighing on margins and consumer demand, despite government pledges to address these issues. Beijing is playing the long game, so any policy changes to support consumption and tackle involution may take time to impact JD's performance.