Wednesday was a good day for investors to be holding Chinese e-commerce stock Alibaba (BABA 3.98%). Internal company data showed that the massive shopping holiday currently underway in China is proving to be quite lively this year.

Investors greeted this news happily, sending the company's U.S.-listed equity nearly 4% higher on the day. That compared favorably to the essentially flat performance of the S&P 500 (^GSPC 0.01%).

The 411 on 618

The 618 shopping festival in China is an event held every June, created by Alibaba peer JD.com to commemorate that company's founding date of June 18. It has effectively been co-opted by other big Chinese retailers, Alibaba included. During the 618 period, online retailers offer a dizzying number of deals and discounts to shoppers.

Image source: Getty Images.

It seems the 2025 version is shaping up to be very robust, according to preliminary data from Alibaba domestic e-commerce business Taobao and Tmall Group, cited by The South China Morning Post -- also owned by Alibaba.

The data show that sales of categories covered by current government subsidies rose by 283% in the so-called "initial checkout period" stretching from May 13 to May 26, compared to a similar stretch of time in 2024's Singles' Day (Alibaba's own shopping holiday).

Meanwhile, the newspaper reported, JD.com's sales of home appliances and electronics saw a 380% year-over-year surge in only the first hour of its 618 campaign, which launched on May 30.

The subsidy effect

The Chinese government isn't afraid to throw heavy state support into efforts to bolster economic growth. Its latest subsidy program targets home appliances and related products, and if those early data indicate a trend, 618 will provide quite a lift to not only Alibaba, but any large or small Chinese online retailer selling its wares during the event.