Signage at JD.com’s warehouse in Shanghai, China, March 9, 2022. The U.S. Securities and Exchange Commission (SEC) on Wednesday added more than 80 companies to the list of companies facing possible delisting from American stock exchanges, including Chinese companies JD.com, Pinduoduo, Bilibili and NetEase.
Qilai Shen | Bloomberg | Getty Images
Shares in Chinese e-commerce giant JD.com fell 10% in Hong Kong on Wednesday after U.S. retailer Walmart confirmed it would 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 businesses for Walmart China and Sam’s Club and deploy capital to other priorities.”
The company said: “JD has been a valued partner for us over the past eight years and we are committed to continuing our relationship with them.”
The stock was the biggest loser on the Hong Kong stock exchange. Hang Seng Index. The Stocks listed in the US fell 9.5 percent in after-hours trading.
Walmart entered into a strategic alliance with the Chinese company in June 2016, when the US retailer acquired a 5 percent stake in JD.com.
In its 2023 annual report, JD.com reported that Walmart owned 9.4% of the company’s common stock as of March 31, holding just over 289 million shares.
JD.com did not respond to CNBC’s request for comment.
— CNBC’s Evelyn Cheng contributed to this report.
