Alibaba Group Holdings, Ltd. (NYSE:BABA) reported strong demand during the initial sales period of its Singles' Day shopping festival, signaling a potential rebound in consumer confidence in China.

Singles' Day is the world's largest online shopping festival and while the holiday itself is on Nov. 11, Alibaba hosts a nearly month-long sales event leading up to the holiday on its Taobao and Tmall e-commerce platforms.

Solid Sales: During the initial sales period which began on Oct. 14, Alibaba reported "solid momentum" with 284 brands each surpassing sales of approximately $14 million. Taobao and Tmall saw strong sales growth in designer toys, niche home appliances and furniture.

Pet products and pet food were also in high demand with 658 brands doubling their sales in the first four hours compared to the same period last year.

Online consumer spending has picked up in China, according to data from Meritco Services. The major e-commerce platforms, Tmall and Taobao, JD.com, Inc. (NASDAQ:JD) and ByteDance's Douyin reported a five-fold increase in daily sales for cosmetics and designer toys in the lead up to Singles' Day compared to earlier months of the year.

E-commerce sites also saw nearly four-fold growth in sales of outdoor gear over the same period.

China's Economy: China recently unleashed a broad set of policies intended to revive its slowing economy and is considering another substantial fiscal initiative next week with plans to approve over $1.4 trillion in additional debt issuance.

Singles' Day has become a proxy for consumer sentiment in China and an indicator of its economic health. The sales results from the initial Singles' Day promotion period suggest consumer confidence in China is looking up.

BABA Price Action: According to Benzinga Pro, Alibaba shares are down 1.59% at $97.13 at the time of publication Thursday.