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Alibaba defies China’s slowdown amid mobile-spending shift

Alibaba Group Holding defied China’s economic slowdown by capturing the shift of consumer spending to smartphones and expanding advertising on mobile devices.

Alibaba had 346 million monthly average users on mobile devices in the quarter ended Sept 30, up 59 percent from a year earlier. The e-commerce company is making more money on each mobile purchase by offering better advertising opportunities for merchants. Alibaba recorded 2.39 percent of the value of its mobile transactions as revenue in the quarter, up from 1.87 percent a year ago.

Sales jumped 32 percent to CNY22.2 billion (USD3.49b) in the three months ended September, the company said on Tuesday, beating analyst estimates. Alibaba’s shares climbed 4.1 percent to USD79.44 at the close in New York, reaching the highest closing price since Aug 10. The stock is heading for its best month since the initial public offering.