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JD Stock: The Tencent News That Has Chinese Tech JD.com Tumbling Today

InvestorPlace2021-12-24

JD.com(NASDAQ:JD) stock is taking a beating on Thursday following news about Tencent(OTCMKTS:TCEHY) giving away its stake in the Chinese e-commerce company.

At least, Tencent will give away most of its stake in the company. It announced a special one-time dividend that will have it distributing shares of JD stock to its shareholders. That will have to reduce its ownership of the company’s stock by 457 million. That will drop its stake from 17% to 2.3%.

According to Tencent, it’s reducing its stake in JD.com because the company is now viable and doesn’t need its support. The Chinese company says that this is simply part of its investment strategy.

While that may be true, there could be other factors at play. Chinese regulators have been cracking down on companies growing too large with fees. It’s possible that Tencent decided to give away the majority of its stake in JD.com to avoid possible action from the government, reports CNBC.

No matter the reason, it’s JD stock that is feeling the heat today over Tencent’s move. That includes heavy trading of the shares. As of this writing, more than 18 million shares of the company’s stock have changed hands. That’s already above the company’s daily average trading volume of about 9.5 million shares.

JD stock is down 6.92% and TCEHY stock is up 5.79% on Thursday. JD stock is down 20.2% since the start of the year and TCEHY stock is down 17.6% year-to-date.

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Comment20

  • haircut
    ·2021-12-25
    Good move
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  • Jess261
    ·2021-12-25
    Okay 
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  • robot1234
    ·2021-12-25
    I will love to buy at HK250
    Reply
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    • NCM
      Cool
      2021-12-25
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    • haircut
      it is possible with current market situation
      2021-12-25
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  • TSY123
    ·2021-12-25
    Like
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  • etan000
    ·2021-12-24
    Ok
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  • MHh
    ·2021-12-24
    Waiting for tencent to give away other shares[Cool] 
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  • JC888
    ·2021-12-24
    I am surprised that there is on Winter of Discontentment in China with all these Big Tech companies being pounded by the govt that seriously will be having a knock off effect on Chinese stocks by the International investors.... The reality check will come into play when DiDi delist from NYSE and list on HK Exchange.  If the migration is under whelming, it will be a clear signal to tell them to bugger off.  I for certain would not buy into HK Didi until it becomes clearer if anymore unreasonable and badly exercised PR blitz is going to happen.... No point pouring hard earned money into the drain yah ?
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  • Ermmmmmm
    ·2021-12-24
    Will tencent do the same for Tesla?
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  • AricLo
    ·2021-12-24
    ok
    Reply
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  • Bspn
    ·2021-12-24
    Ok
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    • Bspn
      ok
      2021-12-27
      Reply
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  • 7united
    ·2021-12-24
    Hi
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  • ivanlam
    ·2021-12-24
    [smile] 
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    • ivanlam
      [Happy]
      2021-12-24
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  • koolgal
    ·2021-12-24
    JD.com is oversold today on news that Tencent is giving away its stake in JD to Tencent shareholders. It is probably a knee jerk reaction to the news but JD should recover once things settle down.  Go JD! 🚀🚀🚀🌛🌛🌛
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    • koolgal
      Thanks
      2021-12-25
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    • koolgal
      Thanks
      2021-12-25
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    • THEWIZARD
      👍
      2021-12-25
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    View more 2 comments
  • deadcow
    ·2021-12-24
    wa
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  • Rudyy
    ·2021-12-24
    Like
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  • StockMaskter
    ·2021-12-24
    Waiting to get my JD stock
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    • koolgalReplying toKLHuat
      Thanks
      2021-12-24
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    • KLHuat
      Nice one
      2021-12-24
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    • koolgal
      Lucky you!  Congratulations
      2021-12-24
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  • soapymouse
    ·2021-12-24
    Quite mind-boggling. Instead of selling their stake of JD shares on the market, Tencent decided to give them (donate) to its shareholders instead. Perhaps they wanted to prevent a misperception that JD was not a good investment? 🤔 
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    • glintzi
      I don't think so. Tencent must have its reasons for distributing JD.COM shares to shareholders. I can't explain it.
      2021-12-24
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    • zingle
      Wait and see. I think Alibaba will do something similar after Tencent.
      2021-12-24
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    • zippiee
      In any case, this is good for Tencent, but not good for JD.COM.
      2021-12-24
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  • Dcagency
    ·2021-12-24
    Panic selling surrounding nervousness in Chinese stocks.
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  • Barbarazhao
    ·2021-12-24
    In long term JD will be fine
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