The logo of a JD.com warehouse in Shanghai, China, March 9, 2022. NetEase.
Shen Qilai | Bloomberg | Getty Images
Chinese e-commerce giant stocks Jingdong Hong Kong stocks plunged 10% 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 the stake will allow the company to “focus on the strong China operations of Walmart China and Sam’s Club and deploy capital to other priorities.”
“JD.com has been an important partner of ours over the past eight years and we are committed to maintaining an ongoing commercial relationship with them,” the company said.
The stock was the largest decliner in Hong Kong stocks Hang Seng Index. this U.S. listed stocks It fell 9.5% in after-hours trading.
Walmart signed a Strategic alliance with Chinese companies in June 2016the American retailer held a 5% stake in JD.com at the time.
in its 2023 Annual ReportJD.com reported that as of March 31, Walmart owned 9.4% of the company’s common stock, holding just over 289 million shares.
JD.com declined to comment when contacted by CNBC.
—CNBC’s Evelyn Cheng contributed to this report.
