Walmart dumps shares of Chinese company while calling it a “precious partner”
Walmart sold the entirety of its stake in JD.com, the Chinese e-commerce giant, on Tuesday. According to Bloomberg, it raised $3.6 billion from selling 144.5 million shares at $24.95.
In 2016, Walmart sold its Chinese e-commerce business Yihaodian to JD.com, while acquiring about a 5% stake in the latter, which made Walmart the biggest stakeholder of JD.com at the time.
Walmart's own China operations are doing well, with quarterly sales growing 17.7% in the second quarter. Its Sam's Club franchise now has 48 stores in China, and membership income grew 26% last quarter, outpacing its growth in the US.
This came as China's e-commerce giants are hit by decreased consumer spending post-pandemic and growing competitions. Despite the massive sell-off, Walmart said JD.com is a “precious partner” it wil continue to cooperate with.
JD.com’s Hong Kong listing closed down 8.7% on Wednesday, pushing the Hang Seng Tech Index lower. Its US listing plunged 9.5% during after-hour trading on Tuesday. Since its peak in 2021, JD.com has lost about 74% of its market cap. Prices have changed little compared to when Walmart became its biggest shareholder.
Walmart's own China operations are doing well, with quarterly sales growing 17.7% in the second quarter. Its Sam's Club franchise now has 48 stores in China, and membership income grew 26% last quarter, outpacing its growth in the US.
This came as China's e-commerce giants are hit by decreased consumer spending post-pandemic and growing competitions. Despite the massive sell-off, Walmart said JD.com is a “precious partner” it wil continue to cooperate with.
JD.com’s Hong Kong listing closed down 8.7% on Wednesday, pushing the Hang Seng Tech Index lower. Its US listing plunged 9.5% during after-hour trading on Tuesday. Since its peak in 2021, JD.com has lost about 74% of its market cap. Prices have changed little compared to when Walmart became its biggest shareholder.
