PDD Holdings, the parent company of Pinduoduo and Temu, fell short of market expectations for quarterly revenue due to weak demand in its Chinese e-commerce business despite efforts to boost spending through discounts and government incentives. This led to a decrease of over 3% in PDD's U.S.-listed shares during premarket trading.

Although stimulus measures and discounts have attracted some customers, PDD's sales figures reflect ongoing economic challenges in China that are causing consumers to be cautious with their spending. Additionally, PDD faces tough competition from industry giants Alibaba and JD.com, both of which have reported better-than-expected revenues recently. PDD operates Pinduoduo within China and Temu internationally.

For the three months ending on December 31, the company reported revenue of 110.61 billion yuan ($15.27 billion), falling short of the analysts' average projection of 115.38 billion yuan. On a positive note, net income increased from 23.28 billion yuan in the same period the previous year to 27.45 billion yuan.

The company's shares are listed on the U.S. market, and the exchange rate at the time was $1 = 7.2421 Chinese yuan renminbi.