JD.com leads losses in Hong Kong, falling 10% after Walmart confirms share sale

Shares of the Chinese e-commerce giant JD.com fell 10% in Hong Kong on Wednesday after US retailer Walmart confirmed it would sell its stake in the Chinese firm.

Walmart told CNBC that the decision to sell its stake will allow the company to “focus on our strong China operations for Walmart China and Sam’s Club and deploy capital to other priorities.”

The company said: “JD has been a valuable partner to us for the past 8 years and we are committed to an ongoing business relationship with them.”

The stock was Hong Kong’s biggest loser Hang Seng Index. The US listed stocks it fell 9.5 percent in after-hours trading.

Walmart entered into a strategic alliance with the Chinese company in June 2016, with the US retailer then taking a 5% stake in JD.com.

In its 2023 annual report, JD.com reported that Walmart owned 9.4 percent of the company’s common stock as of March 31, holding just over 289 million shares.

JD.com had no comment when contacted by CNBC.

— CNBC’s Evelyn Cheng contributed to this report.