JD.com's board greenlights US$5b buyback

JD.com said yesterday its board has approved a new US$5 (HK$39) billion share repurchase program, effective September, allowing the Chinese e-commerce giant to buy back its stock over the next 36 months.

US-listed shares of the company jumped 5.1 percent in pre-market trading.

JD.com is facing stiff competition in China's e-commerce sector, with all major firms ramping up promotions and discounts to woo cash-strapped consumers amid muted recovery in the world's second-largest economy.

Earlier this month, big-box retailer Walmart sold its entire roughly US$3.7 billion stake in JD.com, ending an eight-year investment in the company as it was yielding waning returns.

Reuters