Shares in PDD Holdings, the Chinese owner of the shopping platform Temu, have fallen around six percent over the past month and 30 percent since the start of 2026.
DR reported on September 15 that the share price of Temu’s parent company has moved mainly in one direction this year. In the article, investment strategist Jacob Pedersen of Middelfart Sparekasse points to the new European customs rules as one factor behind the decline, according to DR.
Pedersen told DR that the drop was especially sharp heading into the summer, when the rules took effect. The duties apply per type of goods, so a customer buying a sweater and a pair of socks pays customs twice.
According to Euronews, the EU began imposing a flat customs duty on low-value parcels from outside the bloc on July 1, 2026. The change directly affects cross-border shopping of the kind Temu is built on, ending tax-free Temu and Shein shopping in its previous form.
Customs rules are not the only pressure, Pedersen said. Temu and PDD Holdings are also caught in a hard price war in Chinese online retail, where competitors include Alibaba and JD.com.
Weaker earnings and regulatory pressure
Reuters reported on August 24, 2026 that PDD missed quarterly revenue estimates, while profit beat forecasts. Reuters linked the revenue miss to fierce domestic competition and increased regulatory pressure on the company.
BBC noted on August 31, 2026 that the Temu owner had reported lower than expected quarterly revenue in August. Reuters also said PDD’s US-listed shares rose in early trading after the August earnings release.
Temu still wants to sell internationally, and the company has begun investing more money in its supply chain, DR reported. Temu does not produce its own goods, and the aim is faster and cheaper delivery of some popular items.
Management has not said what earnings it expects from those investments, Pedersen told DR. He said that is a significant concern for analysts, because large spending is being announced without visibility on the return.
Pedersen assessed that Temu is among the better performers on earnings compared with its competitors. That alone does not reduce investor uncertainty, he said, because expectations set around 18 months ago have since been cut back.
DR also noted that the Chinese fast-fashion platform Shein had a difficult stock market debut on September 1. Shein listed at an introductory price of 48.56 Hong Kong dollars, and the share then fell to 43.8 Hong Kong dollars.
Reuters reported that France started applying fees to ultra-fast fashion sold by sites including Shein and Temu on September 1, 2026. Reuters further reported that European finance ministers agreed on September 15, 2026 to bring forward customs duties on low-value parcels.
