Shares of PDD Holdings (NASDAQ: PDD), the parent of Chinese social commerce company Pinduoduo and new U.S. marketplace Temu, were falling today as rival JD.com (NASDAQ: JD) is preparing for a new $1.5 billion subsidy campaign aimed at competing with Pinduoduo on low-margin merchandise.

Chinese e-commerce stocks fell broadly on signs that competition was heating up, and Pinduoduo stock was down 9.6% as of 12:05 p.m. ET.

According to the South China Morning Post, JD.com is launching a new subsidy campaign in early March to stem Pinduoduo's market share gains, as its Groupon-like social shopping model has made it a major player in Chinese e-commerce, alongside JD and Alibaba. The subsidies are expected to cover both JD's first-party direct retail platform and its third-party platform.

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Source Fool.com