JD.com's Hong Kong shares fall most in over 2 weeks, Nomura trims TP

Reuters2021-06-11

** Hong Kong shares of China's e-commerce company JD.com Inc fall 2.2% to HK$277.20, the lowest since May 25

** Stock ranks the fourth biggest decliner in the Hang Seng Tech Index and the sixth biggest loser in information technology sub-index

** Nomura maintains "buy" rating on JD but trims TP of its Hong Kong shares to HK$365 from HK$375 and its U.S. shares to $94 from $98, saying the tone about investment in community grocery group-buy $(CGG)$ business sounds more aggressive than originally thought

** JD's management has decided to ramp up investments in CGG space from 2Q, instead of taking a prudent approach on CGG investment which the market believes that JD was unlikely to invest as aggressively as its peers like Meituan and Pinduoduo - Nomura

** The Hong Kong Hang Seng sub-index tracking information technology firms gains 0.1%, while the Hang Seng Tech Index edges down 0.02%%

** The Hang Seng China enterprises index climbs 0.2%, and the bench mark index rises 0.3%

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