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Alibaba’s Amap Hits Record 360 Million Users on First Day of China’s Extended Holiday

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Alibaba Group’s mapping app Amap reached an all-time record of over 360 million daily active users on the first day of China’s eight-day National Day holiday, the company announced on Wednesday.

The surge highlights Amap’s growing dominance in the travel and lifestyle app ecosystem and marks a significant milestone in its ongoing rivalry with Meituan, another major player in China’s digital services market.

AMAP’S STRATEGIC SHIFT AND AI FEATURES

Traditionally known for navigation, Amap has been expanding into lifestyle and local services, directly challenging Meituan’s Dazhong Dianping platform. It now offers AI-powered rankings of restaurants, hotels and tourist destinations through its new feature called “Street Stars”, which leverages artificial intelligence algorithms to generate destination lists for users.

As part of the launch campaign, Amap rolled out 1 billion yuan ($140.43 million) worth of subsidies, including ride-hailing discounts and in-store coupons, to boost engagement during the peak holiday period.

MARKET REACTION AND HOLIDAY BOOST

The announcement sent Alibaba’s shares up 4% in Hong Kong trading on Thursday after JPMorgan raised its price target on the stock to HK$240 ($30.85) from HK$165, citing stronger-than-expected user activity and positive outlooks in the company’s digital services ecosystem.

The record usage coincided with China’s National Day and Mid-Autumn Festival, which this year were combined into an eight-day “super holiday”, one of the country’s busiest travel periods.

According to state broadcaster CCTV, China’s national railway handled 23.13 million passenger trips on the first day alone — an 8% increase year-on-year and a new single-day record, underscoring the nationwide travel boom.

ALIBABA VS. MEITUAN: A DIGITAL LIFESTYLE BATTLE

Amap’s evolution reflects Alibaba’s broader effort to capture local-lifestyle market share from Meituan by transforming a simple mapping tool into a comprehensive travel and experience platform.
Chinese consumers, who traditionally turned to Meituan’s Dazhong Dianping for restaurant reviews and bookings, are increasingly finding similar services integrated directly within Amap’s app — backed by AI personalization and user subsidies.

As China’s consumer and tourism sectors rebound post-pandemic, the battle for digital lifestyle dominance between Alibaba and Meituan is set to intensify — with Amap’s record user engagement during the National Day holiday offering Alibaba a strong start.

Typhoon Bebinca Paralyzes Shanghai, Strongest Storm to Hit in 70 Years

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Typhoon Bebinca slammed into Shanghai on Monday, bringing the bustling metropolis of 25 million to a halt. Authorities reported that it was the strongest typhoon to directly strike the city in over seven decades, with wind speeds reaching 130 kilometers per hour (80 mph), equivalent to a Category 1 hurricane. The storm made landfall in an industrial suburb southeast of Shanghai around 7:30 a.m. local time, causing widespread travel disruptions during China’s Mid-Autumn Festival, a major three-day holiday.

Chinese state media confirmed that Bebinca is the most powerful storm to hit Shanghai since 1949. The China Meteorological Administration issued a red typhoon alert, its highest warning level, predicting strong winds and heavy rainfall across eastern China. The storm’s impact has been far-reaching, with all flights at Shanghai’s two major international airports canceled since Sunday night. Train and ferry services were largely suspended, and several highways and bridges in the area were shut down for safety.

The storm has also affected the city’s tourism sector, with popular destinations, including Shanghai Disney Resort, closing their doors on Monday. The timing of the typhoon, coinciding with the Mid-Autumn Festival, has upended holiday plans for many travelers, stranding them during what is normally a festive period.

 

China’s Retail Sales and Industrial Data Fall Short of Expectations in August

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China’s retail sales, industrial production, and urban investment for August all missed market expectations, signaling a slowdown in the world’s second-largest economy. Data released by the National Bureau of Statistics (NBS) on Saturday revealed that retail sales grew by just 2.1% from a year ago, falling short of the expected 2.5% growth forecasted by economists. This marked a deceleration from the 2.7% growth seen in July, further highlighting China’s ongoing struggle with weak consumer demand.

Online sales of physical goods also saw minimal growth, with an increase of less than 1% compared to a year ago.

Industrial production, a key indicator of manufacturing activity, increased by 4.5% in August from a year earlier, missing the 4.8% forecast by Reuters and slowing from the 5.1% growth seen in July. Despite the decline, industrial production continued to grow at a faster pace than retail sales, reflecting China’s persistent economic imbalance of stronger supply with weaker demand.

Darius Tang, Associate Director at Fitch Bohua, noted that the current data points to a structural imbalance in China’s economy. Tang expects the Chinese government to roll out more gradual stimulus measures in the fourth quarter to support sectors like consumption and real estate, both of which have been underperforming.

Fixed asset investment for the January to August period rose by 3.4%, slightly below the projected 3.5% growth. Urban unemployment edged up to 5.3% in August from 5.2% in July, with the NBS attributing this increase to the graduation season. However, the bureau acknowledged that further efforts are needed to stabilize employment.

Additionally, real estate investment continued to decline, falling by 10.2% year-over-year through August, the same rate as in July. Investment in infrastructure and manufacturing also slowed compared to July, further signaling the weakening pace of growth in these sectors.

Amid these economic challenges, the NBS spokesperson, Liu Aihua, warned that the Chinese economy faces “multiple difficulties and challenges” due to changing external conditions. The bureau also emphasized the need for sustained efforts to ensure a stable economic recovery, as domestic demand remains insufficient to fuel growth.

China’s youth unemployment rate, reported separately after the main jobless figures, stood at 17.1% in July for those aged 16 to 24 who are not in school. Although this figure wasn’t updated for August, it remains a significant concern.

The economic downturn comes as China prepares for its Mid-Autumn Festival, a national holiday stretching from Sunday to Tuesday. Despite recent weaker consumption data, policymakers have not announced large-scale stimulus, opting instead for targeted support in key sectors like real estate.

In recent trade data, China’s imports rose by just 0.5% in August compared to a year ago, missing expectations. However, exports grew by 8.7%, surpassing forecasts.

China’s Consumer Price Index (CPI) for August also underwhelmed, rising by only 0.6% year-on-year, disappointing analysts who had expected stronger price growth. These figures collectively underscore the persistent weakness in consumption and domestic demand that continue to hamper the country’s economic recovery from the COVID-19 pandemic.