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JD.com set up an innovative retail division, which includes its grocery business 7Fresh.
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Chinese online retailers’ Hong Kong-listed shares JD.com It rose 1.2% on Wednesday, outperforming the broader market Hang Seng Index The company announced a $5 billion buyback plan late Tuesday.
The company’s U.S.-listed shares rose 2.24% on Tuesday following the announcement. JD.com’s Hong Kong and U.S. stocks are both down about 20% so far this year.
By comparison, Hong Kong’s benchmark Hang Seng Index fell about 0.82% on Wednesday but has risen about 4% so far this year.
The announcement is JD.com’s second buyback this year, following its announcement in March that it would repurchase $3 billion of its shares.
In response to the move, Chelsey Tam, senior equity analyst at Morningstar, said the decision to announce a share buyback was “not surprising.” She explained: “This is a common theme in China when stock prices and growth are low.”
Tan also pointed out VipshopAnother Chinese e-commerce company Increased its own stock buyback program last week.
The domestic economic slowdown has been plaguing China’s e-commerce industry.
Earlier this month, Alibaba’s second-quarter results fell short of expectations on both revenue and profit. On Monday, Temu’s owner Pinduoduo suffers its worst performance in history The company’s second-quarter results showed that its revenue and earnings per share both fell short of expectations.
As early as February, Alibaba announces $25 billion share buyback The company missed its fourth-quarter 2023 revenue target.
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