From CNBC: 2024-08-20 23:22:30

The U.S. Securities and Exchange Commission added over 80 firms, including China’s JD.com, Pinduoduo, Bilibili, and NetEase, to its list facing possible expulsion from American exchanges. Walmart confirmed it will sell its stake in JD.com, causing shares to plunge 10% in Hong Kong. Walmart cited a focus on its China operations and other priorities for the decision.

Walmart entered into a strategic alliance with JD.com in 2016, taking a 5% stake in the Chinese company. In its 2023 annual report, JD.com reported that Walmart owns 9.4% of ordinary shares as of March 31, holding over 289 million shares. The news led to a 9.5% drop in U.S.-listed JD.com shares in after-hours trading.

Market reaction was evident as JD.com became the largest loser on Hong Kong’s Hang Seng index. Walmart expressed commitment to a continued commercial relationship with JD.com, despite the decision to sell its stake in the Chinese e-commerce giant. JD.com did not provide a comment when contacted by CNBC.

These developments highlight the ongoing challenges facing Chinese companies listed on American exchanges, as regulatory concerns and geopolitical tensions continue to impact investor sentiment. Walmart’s divestment from JD.com underscores the evolving dynamics in the global e-commerce landscape, as companies navigate complex market dynamics and strategic priorities.

Read more: JD.com leads losses in Hong Kong, falling 10% after Walmart confirms stake sale