• Short interest in US-listed stock falls to 0.9% on Tuesday

• December quarter sales seen to climb 8.5% from a year earlier

Short sellers are backing away from JD.com Inc. shares, with the Chinese online retailer set to report record quarterly sales on Thursday, fueled by Beijing’s consumer trade-in subsidies.

Short interest in JD.com’s US listed stock slipped to 0.9% of total shares outstanding as of Tuesday, according to S&P Global Inc. data. That was near the lowest level since September 2023 and compares with a recent high of 1.8% in January.

JD.com’s U.S.-listed shares rose 5% in overnight trading on Thursday.

A jump in quarterly revenue is likely to have been driven by last year’s trade-in program for home appliances and strong numbers during the Singles’ Day shopping festival. Revenue for the December quarter is expected to jump 8.5% from a year ago to 332 billion yuan ($45.9 billion), estimates show.

Traders will also be keeping a close eye on the company’s investment in its new food delivery business, given the tough competition with rival Meituan.

In the Hong Kong options market, volume was elevated on Wednesday, with newly opened bullish positions changing hands. Some 2,500 calls expiring in May traded, with exercise levels of HK$200 and HK$170. The Hong Kong-listed stock hasn’t closed above HK$170 since early October.