Finance

JD.com leads losses in Hong Kong, falling 10% after Walmart confirms stake sale

Products You May Like

In this article

Signage at JD.com’s warehouse in Shanghai, China, on Mar. 9, 2022. The U.S. Securities and Exchange Commission on Wednesday added over 80 firms to its list of entities facing possible expulsion from American exchanges, which include China’s JD.com, Pinduoduo, Bilibili, and NetEase.
Qilai Shen | Bloomberg | Getty Images

Shares of Chinese e-commerce giant JD.com plunged 10% on Wednesday in Hong Kong after U.S. retailer Walmart confirmed it will sell its stake in the Chinese firm.

Stock Chart IconStock chart icon

hide content

Walmart told CNBC the decision to sell its stake will allow the company to “focus on our strong China operations for Walmart China and Sam’s Club, and deploy capital towards other priorities.”

The company said “JD has been a valued partner to us over the past 8 years, and we are committed to a continued commercial relationship with them.”

The stock was the largest loser on Hong Kong’s Hang Seng index. The U.S.-listed shares fell 9.5% in after-hours trading.

Walmart entered into a strategic alliance with the Chinese company in June 2016, with the U.S. retailer taking a 5% stake in JD.com back then.

In its 2023 annual report, JD.com reported that Walmart owns 9.4% of ordinary shares in the company as of March 31, holding just over 289 million shares.

JD.com did not have a comment when contacted by CNBC.

— CNBC’s Evelyn Cheng contributed to this report.

Products You May Like

Articles You May Like

Pro-Growth Tax Reforms to Boost Competitiveness in Louisiana
UK house sales rise since the Covid-19 boom as lower mortgage rates spur activity
Many Americans would rather talk about politics than money. Not having those conversations can cost you
Starbucks invests in two innovation farms to help climate-proof its coffee
Buffer ETFs can shield investors from some losses. Here’s what to know before investing

Leave a Reply

Your email address will not be published. Required fields are marked *