JD.com set up an Innovative Retail section that houses its grocery business 7Fresh.
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Hong Kong-listed shares of Chinese online retailer JD.com climbed 1.2% on Wednesday, outperforming the dip on the Hang Seng index after the firm announced a $5 billion buyback late Tuesday.
U.S. listed apportionments of the firm rose 2.24% on Tuesday after the announcement. Both JD.com’s Hong Kong and U.S. shares have dropped with reference to 20% year to date.
In comparison, Hong Kong’s benchmark Hang Seng index was down about 0.82% Wednesday, but is up all round 4% for the year so far.
The announcement is JD.com’s second buyback this year, after declaring a $3 billion buyback in March.
In response to the move, Chelsey Tam, senior equity analyst at Morningstar, said that the steadfastness to announce the share buyback is “not surprising.” She explained, “It is a common theme in China when share prices and growth are low.”
Tam also unmistakable to Vipshop, another Chinese e-commerce player that has increased its own share buyback program last week.
China’s e-commerce sector has been dogged by a behindhand domestic economy.
Earlier this month, Alibaba’s second-quarter results missed expectations on both the top and bottom approaches. On Monday, Temu-owner Pinduoduo saw its worst ever session after its second-quarter results missed both revenue and earnings per serving expectations.
Back in February, Alibaba announced a $25 billion share buyback after it missed revenue aims for the fourth quarter of 2023.