PDD Holdings shares came under pressure after a report said business from its e-commerce platform, Temu, had weakened at two suppliers that also work with rival Shein.
PDD does not disclose separate financial figures for Temu, making the supplier report a rare external glimpse into the platform’s performance. The news has raised investor questions about whether Temu can sustain its aggressive growth trajectory.
Around the same time, Shein released its first disappointing earnings report as a public company, showing a significant drop in operating income.
Some of the pullback may reflect a broader e-commerce slowdown. But the news has intensified focus on fierce competition between Temu and Shein in the global fast-fashion market.