Chinese e-commerce giants Alibaba Group Holding Ltd. ( BABA ) and PDD Holdings, Inc. ( PDD ) saw their shares rise on Monday after China reported a stronger-than-expected jump in retail sales. 

The Details: China's National Bureau of Statistics announced that retail sales of consumer goods surged 6.4% year-on-year in May, reaching 4.13 trillion yuan (about $575.3 billion) and signaling renewed consumer momentum in the world's second-largest economy.

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China's May data marked an acceleration from April's 5.1% growth and beat analysts' estimates of 5%, according to Trading Economics. 

The robust figures were partly attributed to government subsidies and trade-in policies for household and communication appliances, as well as a boost from the Labor Day and Dragon Boat Festival holidays. 

The upbeat data provided a tailwind for leading online retailers. Alibaba ( BABA ), which operates the country's largest e-commerce platform, and PDD Holdings ( PDD ), the parent of Pinduoduo and global shopping app Temu, both benefited from improved investor sentiment. 

Why It Matters: The retail sales rebound suggests that Chinese consumers are more resilient than previously thought, despite ongoing concerns about economic headwinds and U.S. tariffs.

May's data also comes ahead of China's major mid-year shopping festival, which is expected to further boost sales in June. 

The 618 Shopping Festival begins on June 1 and peaks on June 18 each year and was originally launched by JD.com, Inc ( JD ). to celebrate its founding anniversary. 

While challenges remain, the latest retail figures indicate that China's policy support measures are helping to revive domestic demand even in the face of U.S.-imposed tariffs. 

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