China’s PDD Holdings beat forecasts on Tuesday with a 14% rise in third-quarter adjusted earnings, a sign that the e-commerce group’s steep discounts and heavy marketing spending bolstered demand in its home market.

Adjusted earnings per share of 21.08 yuan ($2.97) topped analysts’ average forecast of 16.84 yuan. However, U.S.-listed shares of the company, which runs the Pinduoduo platform in China and Temu internationally, were down about 5% in early trading.

Chinese retail majors such as PDD, Alibaba and JD.com have been wooing domestic shoppers with price cuts and billions of dollars’ worth of subsidised promotions during a prolonged period of subdued consumer confidence amid job worries and a weak property market.

Those discounts have translated into higher sales, although below PDD’s typically high double-digit rates of previous years.

PDD said revenue rose 9% in the quarter, while JD.com reported steady sales growth last week, pointing to strong demand for general merchandise and staples.

“We have seen many industry peers deploy significant capital to develop new business models, leading to increasingly fierce competition,” said PDD’s co-CEO Zhao Jiazhen on a post-earnings call with analysts.

He reiterated the firm expects financial results to continue fluctuating in the coming quarters as it invests in merchant support programmes and platform upgrades.

Globally, Temu and other cross-border platforms like Shein selling cheap goods from China to the rest of the world have come under pressure after the U.S. scrapped duty-free exemption on parcels worth less than $800 and the EU looks to introduce duties on low-cost packages from next year.

Temu was also among platforms cited by a French consumer watchdog last week for selling illicit products.

“Today, with a rapid evolution of trade barriers, we are seeing a significant shift in the regulatory environment for the global business. We will inevitably face greater challenges and uncertainties,” said co-CEO Chen Lei.

PDD reported revenue of 108.28 billion yuan for the quarter ended September 30, compared with the 108.41 billion yuan average of 15 analyst estimates compiled by LSEG.

Adjusted net income attributable to PDD’s shareholders was 31.38 billion yuan, compared with 27.46 billion yuan a year earlier.

The Singles’ Day sales festival, one of the biggest shopping events in China, also ended on a subdued note. Many retailers kicked off discounts in the first half of October, making it the longest festival to date.

Pinduoduo saw sales growth of 11.7% in the period, while JD.com’s and Alibaba’s platforms saw increases of 8.3% and 9.3%, respectively, according to data from Beijing-based tech and commerce consulting firm Analysys.