Chinese e-commerce firm JD.com may buy back US$1 bln worth of US-listed shares over 2 years
Chinese e-commerce company JD.com, which has lost a third of its market value since mid-June, said this week it plans to buy back up to US$1 billion of its American Depositary Shares (ADS) over the next two years.
JD joins several other big Chinese companies, including far-larger rival Alibaba Group, that have announced buyback plans recently as worries about China’s economy hits share prices.
The company, whose shares were up 10.5 per cent at US$25.18 in early trading, reported a 61 per cent rise in second-quarter revenue in August as the number of shoppers and goods bought on its platform jumped. But it forecast slower growth in the current quarter.
JD also reported another net loss in the latest quarter as it invests heavily in its offline operations to complement its internet platform, taking activities such as warehousing and deliveries into its own hands.
