PDD Holdings Stock Climbs Nearly 6% In Wednesday Pre-Market: What's Going On?

Chinese e-commerce giant PDD Holdings (NASDAQ:PDD) climbed 5.87% in Wednesday pre-market, reversing previous session’s losses. The company has been slapped with a fine of 100,000 yuan ($14,359) by a Shanghai district taxation bureau amid non-submission of tax information, reported Xinhua News on Wednesday.

China Increases Scrutiny Amid Tax Issues, Misconduct

The Changning District Tax Bureau of Shanghai under the State Taxation Administration determined that Shanghai Xunmeng Information Technology, an operating unit of PDD Holdings, failed to submit required tax-related information in accordance with regulations governing internet platform enterprises.

The tax authorities have instructed the company to rectify the issue within a specified period.

On Tuesday, the stock had declined 2.15% to close at $104.46 amid a Bloomberg report that over 100 investigators from multiple agencies were dispatched to PDD's Shanghai headquarters as part of an ongoing investigation into alleged misconduct.

The company operates the Pinduoduo platform in China and the Temu marketplace internationally.

PDD Faces Slowing Growth Amid Pressure

The move comes as PDD faces mounting pressure, with executives warning of slowing growth amid intense domestic competition, while Chinese regulators raise concerns over aggressive price wars in e-commerce and food delivery.  

In November 2025, the company reported fiscal third-quarter 2025 results, which showed a 9% year-on-year revenue growth to 108.28 billion yuan ($15.21 billion). However, Finance Vice President Jun Liu said higher spending on merchant support and ecosystem investments could lead to quarter-to-quarter financial volatility.

According to Benzinga Edge Stock Rankings, PDD Holdings has a growth score of 84.61% and a value rating of 88.44%. Benzinga’s screener allows you to compare PDD’s performance with its peers. 

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.