NEW YORK (TheStreet) -- Amazon.com Inc. (AMZN) will establish a presence in China's Shanghai free trade zone, according to state news agency Xinhua, as it looks to take advantage of less stringent trade regulations to sell a wider range of products in the country, Reuters reports.
The move signals its intent not only to remain in China but to increase its presence in an e-commerce market dominated by Alibaba Group Holding and Beijing-based JD.com (JD) , Reuters said.
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Amazon signed a memorandum of cooperation "to develop cross-border e-commerce in the Shanghai free trade zone", Xinhua said, adding that the company will use the zone to expand its import business through the introduction of "Amazon's full global product line into the Chinese market."
Shares of Amazon.com are up 0.42% to $336.55.
TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share."