(Yicai) Aug. 21 — Shares of JD.Com plunged after U.S. retail giant Walmart sold all its stakes in the Chinese e-commerce giant for about $3.6 billion.

JD.Com (HKG: 9618) closed 8.7 percent lower at HKD 102.40 (USD 13.14) per share in Hong Kong today, after falling as much as 12 percent earlier. The New York-listed stock (NASDAQ: JD) fell 4.6 percent to USD 28.19 yesterday.

Walmart no longer holds JD.Com shares, the US Securities and Exchange Commission (SEC) announced yesterday. According to the Beijing-based company’s latest financial report, Walmart was the company’s second-largest shareholder as of March 31 with a 9.4 percent stake, only behind its CEO Liu Qiangdong, who held 11.2 percent.

As Bloomberg News reported today, Walmart sold its 144.5 million JD.Com shares yesterday at $24.95 per share. The company plans to use the proceeds to invest in its other businesses in China, such as the fast-growing members-only warehouse retail chain Sam’s Club.

JD.Com today repurchased about $390 million worth of shares, completing its $3 billion share buyback plan announced in March, the company said.

Walmart and JD.Com joined forces in 2016 when the Arkansas-based retail giant transferred its stake in Chinese e-commerce platform Yihaodian to JD.Com in exchange for about 5 percent of the stock. Walmart subsequently increased its stake several times, once exceeding the 10 percent mark.

The two companies have also established a number of business relationships. Walmart’s retail stores use JD.Com’s logistics and e-commerce systems for instant delivery services in China, while JD.Com has expanded its product categories through the other company’s global sourcing and supply chain systems.

After years of cooperation, Sam’s Club and Walmart’s e-commerce businesses in China have performed well, so the company decided to recoup its investment to ease financial pressure, a person familiar with the matter told Yicai.

Walmart’s net income fell 43 percent year-on-year to $4.5 billion in the three months ended July 31, while revenue rose 5 percent to $169.3 billion, according to its latest earnings report.

JD.Com’s net profit rose 92 percent year-on-year to $1.7 billion in the second quarter, remaining strong despite fierce competition in China’s e-commerce space. Revenue rose 1 percent to $40.1 billion.

Editors: Dou Shicong, Martin Kadiev