Walmart pulls out of JD.com stake by selling USD3.6B amid slowing Chinese economy

(MENAFN) Walmart has recently divested its stake in the Chinese e-commerce giant JDfor approximately USD3.6 billion, ending an eight-year partnership marked by declining revenues and increasing challenges within the Chinese technology sector. According to sources, Walmart sold 144.5 million shares of JDat a price of USD24.95 each, which is 11 percent below the stock's closing price on the exchange the previous day and near the lower end of the stock's indicative price range of USD24.85 to USD25.85. This move reflects broader market conditions, as JD.com's share price on the Hong Kong stock exchange dropped by 11 percent at the start of trading on Wednesday, leading to significant selling pressure on Chinese e-commerce and tech stocks.

The sale aligns with Walmart's strategic shift in China, the world's second-largest economy, where it has increasingly focused on its own e-commerce and delivery operations through Sam's Club and other subsidiaries. This strategic pivot comes as JD.com, Walmart's former e-commerce partner, faces difficulties due to China's slowing economy, characterized by a property crisis, market volatility, and uncertain job market prospects. Despite JDsurpassing expectations in the second quarter with a modest 1.2 percent revenue growth, its market value has halved since the beginning of last year, reflecting the broader struggles of the sector amidst a challenging economic environment.

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