Finance
JD.com suffers losses in Hong Kong, falling 10% after Walmart confirms stake sale
Signage at the JD.com warehouse in Shanghai, China, on March 9, 2022. The U.S. Securities and Exchange Commission on Wednesday added more than 80 companies to the list of entities that could be barred from U.S. exchanges, including China’s JD.com , Pinduoduo , Bilibili and NetEase.
Qilai Shen | Bloomberg | Getty Images
Shares of the Chinese e-commerce giant JD.com fell 10% in Hong Kong on Wednesday after US retailer Walmart confirmed it will sell its stake in the Chinese company.
Walmart told CNBC that 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 to other priorities.”
The company said: “JD has been a valued partner to us over the past eight years and we are committed to an ongoing commercial relationship with them.”
The stock was the biggest loser in Hong Kong Hang Seng Index. The US Listed Stocks fell by 9.5% in after-hours trading.
Walmart went one strategic alliance with the Chinese company in June 2016with the American retailer taking a 5% stake in JD.com at the time.
In his Annual report 2023JD.com reported that Walmart owns 9.4% of the company’s common stock as of March 31, and owns just over 289 million shares.
JD.com had no comment when contacted by CNBC.
– CNBC’s Evelyn Cheng contributed to this report.
