(Bloomberg) — JD.com Inc. plans to buy back up to $5 billion worth of its own shares in a bid to reassure investors worried about a possible worsening consumer slowdown in China.
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The company on Tuesday presented plans to buy back shares from September to August 2027. Its American Depositary Shares, which had fallen 8.2 percent this year, rose more than 4 percent after trading began in New York.
JD’s latest share buyback plan came a week after Walmart Inc. announced it had sold its stake in the e-commerce company, sparking concerns about the outlook for consumer spending in the world’s second-largest economy. Separately, Temu owner PDD Holdings Inc. surprised investors on Monday with an unusually gloomy outlook, underscoring how China’s economic malaise is weighing on a broad swath of the retail industry.
Beyond e-commerce, a series of disappointing results have raised alarm bells about China’s economy. This week, popular fast-food chain Din Tai Fung — one of the country’s most popular restaurant brands — announced it would close more than a dozen stores. Last month, Starbucks Corp. said sales in China fell 14 percent in the June quarter.
(Updates stock price in second paragraph.)
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