PDD’s Warning Highlights Growing Strain on China Consumer Firms

The prospects for Chinese consumer firms are looking increasingly bleak after PDD Holdings Inc. cautioned that its revenue growth will slow as competition continues to heat up.

PDD said its current trajectory wasn’t sustainable, reinforcing concerns fueled by Alibaba Group Holding Ltd.’s anemic revenue growth after its Chinese commerce business shrank for the first time in at least a year. The shares of Temu’s owner slumped by the most on record on Monday following the warning.