Robust ad returns boost Alibaba revenue in Q2

Alibaba Group Holding Ltd's second-quarter revenue beat analysts' estimates as China's biggest online shopping company boosted advertising to fend off a slowing economy.

Sales rose 32 percent to 22.2 billion yuan ($3.5 billion) in the three months ended September, the company said on Tuesday. That compares with the 21.3 billion yuan average of estimates compiled by Bloomberg. Net income surged to 22.7 billion yuan after recognizing an accounting gain on an affiliate.

New cloud-based services for merchants and partnerships with retailers including electronics chain Suning Commerce Group Co are helping boost ads and limit the impact of a slowing Chinese economy. Increased promotions on Alibaba's Tmall and Taobao marketplaces are driving sales ahead of next month's Singles' Day, the country's biggest shopping event.