Pinduoduo Draws Short Sellers in China’s E-Commerce Price War

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Since hitting a more than one-year high in January thanks to its low-priced sales strategy, shares of PDD have tumbled 30%

(Bloomberg) — One of China’s most popular stock bets of the past year is unraveling fast, weighed down by an intensifying e-commerce price war and weaker economic growth.

Short interest in budget shopping app PDD Holdings Inc. returned to levels not seen since mid-March, with bearish positions accounting for 8% of total shares outstanding, IHS Markit Ltd. data show. That’s higher than for larger rivals JD.com Inc. and Alibaba Group Holdings Ltd., which are offering new discounts to gain market share. Short interest signals bets that the share price will drop.