In Hong Kong, JD.com experiences a 10% decline following Walmart's confirmation of its stake sale.
- Walmart announced to CNBC that selling its stake will enable the company to concentrate on its robust China operations for Walmart China and Sam's Club and allocate capital towards other priorities.
- Walmart entered into a strategic alliance with the Chinese company in June 2016.
- As of March 31, Walmart owned 9.4% of JD.com's ordinary shares, with approximately 289 million shares in its possession.
On Wednesday, the shares of the Chinese e-commerce giant fell 10% in Hong Kong following the confirmation from U.S. retailer Walmart that it plans to sell its stake in the company.
Walmart announced to CNBC that selling its stake will enable the company to concentrate on its robust China operations for Walmart China and Sam's Club and allocate capital towards other priorities.
Over the past 8 years, JD has been a valued partner to us, and we are committed to maintaining a commercial relationship with them.
In after-hours trading, the largest loser on Hong Kong's stock exchange was the , which fell 9.5%.
In June 2016, JD.com, a Chinese company, and Walmart, a U.S. retailer, formed a strategic alliance. At that time, Walmart acquired a 5% stake in JD.com.
As of March 31, Walmart owned 9.4% of JD.com's ordinary shares, with approximately 289 million shares in its possession.
JD.com did not have a comment when contacted by CNBC.
— CNBC's Evelyn Cheng contributed to this report.
Business News
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