JD shares dropped more than 9% in premarket trading.

Tiger Newspress2021-12-23

JD shares dropped more than 9% in premarket trading.

Tencent Holdings Ltd.plans to distribute more than $16 billion ofJD.com Inc.shares as a one-time dividend, representing a near-retreat from the Chinese e-commerce firm that is stoking concerns it will pull away from other marquee investments.

Tencent plans to give out 457.3 million Class A shares in JD.com, representing about 86.4% of its total stake and nearly 15% of the online retailer’s total issued shares, according to a filing to the Hong Kong stock exchange. At Wednesday’s close, the shares in the proposed distribution were worth HK$127.7 billion ($16.4 billion). Tencent, which controls about 17% of JD.com, will hold roughly 2.3% of the e-commerce company’s shares after the handout, JD.com said in a separate statement.

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Comments

  • LohYK
    2021-12-24
    LohYK
    Without the backing of tencent, this definitely erode confidence of the investors
  • CynthiaGho
    2021-12-23
    CynthiaGho
    Like pls
  • Eded
    2021-12-23
    Eded
    This will serve warning to other tencent backed stocks like SEA . Anytime can get rid …
  • Chloe26
    2021-12-23
    Chloe26
    Ok
  • JunHaoT
    2021-12-23
    JunHaoT
    Too much regulation in China
  • kerukel88
    2021-12-23
    kerukel88
    Ok
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