JD.com has established an innovative retail division, which owns the grocery business 7Fresh.
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Chinese online retailer’s Hong Kong-listed shares Jingdong Up 1.2% on Wednesday, outperforming broader market declines Hang Seng Index The company announced a $5 billion buyback late Tuesday.
After the news was announced, the company’s U.S.-listed shares rose 2.24% on Tuesday. Since the beginning of the year, JD.com’s Hong Kong and U.S. share prices have both fallen by about 20%.
By comparison, Hong Kong’s benchmark Hang Seng Index fell about 0.82% on Wednesday but is up about 4% so far this year.
This is JD.com’s second buyback this year after announcing a US$3 billion buyback in March.
In response to the move, Chelsey Tam, senior equity analyst at Morningstar, said the decision to announce the share buyback was “not surprising.” “This is a common theme in China when stock prices and growth are lower,” she explained.
Tan also pointed out Vipshopanother Chinese e-commerce company Added its own stock buyback program last week.
China’s e-commerce industry has been plagued by the slowdown in the domestic economy.
Earlier this month, Alibaba’s second-quarter results missed expectations for both revenue and profit. Monday, Temu Boss Pinduoduo experiences its worst deal ever This comes after its second-quarter results missed revenue and earnings per share expectations.
Back in February, Alibaba announces $25 billion stock buyback It failed to achieve its revenue target for the fourth quarter of 2023.
