STORY: Walmart has sold its entire stake in Chinese company JD.com, according to a source.

The company was the e-commerce company’s largest shareholder, but is now withdrawing from its eight-year stake to focus on its own China business.

The source said a placement of Walmart shares was fully subscribed and would be valued at $3.74 billion at the upper end of the offered range.

The US retail giant said it plans to double its Sam’s Club warehouse business in China following the stake sale.

The move also shows that the country’s e-commerce sector has lost its attractiveness to investors.

The reason for this is that companies are struggling with low margins due to brutal price competition and weak consumer demand.

JD.com shares have fallen about 70% since their peak three years ago.

Prices have also barely changed compared to 2016 levels, when Walmart became the majority shareholder.

JD.com said in a statement that it was “fully confident about the future cooperation between both sides.”

The company’s Hong Kong-listed shares fell by more than a tenth on Wednesday (August 21).

The Chinese retail market is affected by a decline in consumer confidence.

The triggers were a weakening of the real estate market and concerns about employment and income.

Major e-commerce companies such as JD.com and competitors Alibaba and Pinduoduo have engaged in brutal price wars to entice consumers to buy.

However, these tactics have put pressure on sales growth and margins.