JD.com (JD) Stock Rises After Company Anticipates Closing Gap with Alibaba

NEW YORK (TheStreet) -- Shares of Chinese e-commerce company JD.com  (JD) rose 9.01% to $23.95 in early afternoon trading Tuesday after the company said its partnership with Tencent Holdings  (TCTZF) would help decrease the gap between itself and Chinese e-commerce giant Alibaba  (BABA) .

Tencent's WeChat and Mobile QQ apps, which have more than 450 million active users apiece, helped JD.com increase its mobile orders by more than sixfold in the third quarter compared to the same period one year earlier, said JD.com founder and chairman Richard Liu, according to Bloomberg.

Increasing smartphone usage among rural users should increase mobile e-commerce growth as smartphone prices in China drop to less than $50 per device, Liu added.

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JD.com and Alibaba are competing for the 1.28 billion mobile phone users in China, and Liu said this battle should help accelerate the competition between the two companies.

"The market is large and I'm sure Alibaba will continue doing a good job," Liu said. "JD.com will do a better job."

JD Chart JD data by YCharts

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