Pinduoduo Expands into Xiongan New Area with First Property Acquisition

Most recently, Chinese e-commerce firm Pinduoduo signed an agreement with Power Construction Corp of China on June 21 to move into an e-commerce industrial park in Xiongan New Area, in China’s northern Hebei province. The region, some 100km from Beijing, is envisioned by President Xi Jinping as an innovation hub. The deal marks Pinduoduo’s first property acquisition. Earlier this month, the company registered a wholly owned subsidiary in Xiongan, with its first group of 150 staff starting work. Pinduoduo also launched a recruitment drive to hire more than 5,000 employees, according to the company.

“The link between corporate investment and home purchases appears weaker than in the past,” said Lulu Shi, director of Asia-Pacific corporate ratings at Fitch Ratings. “Even when a new tech or AI company creates jobs and attracts talent, employees may be more cautious about buying homes, given the still-soft employment sentiment in China.” Incoming staff were more likely to rent first rather than buy, Shi said, with the most visible near-term effect likely to be on the rental market.