JD Announced Its $1 Billion USD Share Buyback Plan

China's No. 2 online retailer JD.com has just announced its $1billion USD share buyback plan. The buyback program is worth about 3.5% of the company's market capitalization, and the company said it would be completed over the next 12 months. The company's stock had declined by roughly half since the beginning of the year, raising concerns of a slowing Chinese economy in the face of trade frictions with the U.S.

Shares of other Chinese tech companies have also plummeted a lot in this year as investors worry about slower economic growth in China, tightening government regulations and the trade battle with the U.S. Both e-commerce rival Alibaba Group Holding Ltd. and tech giant Tencent Holdings Ltd. are down more than 23% this year. Tencent, which faced a regulatory stranglehold on new videogames for most of the year, spent more than a month this year buying back its own shares.

Compared with competitors, JD.com has suffered a big headache on the sexual assault scandal of Mr. Liu in Minneapolis. US prosecutor said they were declining to press charges. Mr. Liu has consistently denied all wrongdoing. Mr. Liu controls nearly 80% of JD.com's voting shares and the board cannot meet without him unless he recuses himself.

In a number of Southeast Asian jurisdictions, regulators have acted proactively to ensure quality and safety in the pharmaceutical market. In Malaysia, researchers are exerting pressure on the Health Ministry to issue stricter regulations for herbal and traditional medicines, citing the potential toxicity of such products, and the existence of strict controls in China, Hong Kong, Taiwan, and Singapore. The Indonesian Ministry of Industry has released plans for a new regulation that will supervise the use of local materials in pharmaceuticals, calling for a higher proportion of local content. Indonesia is heavily reliant on imported pharmaceutical materials, and the higher quota for local components is part of the government’s efforts to establish a domestic pharmaceutical industry with traceable materials.

In a number of Southeast Asian jurisdictions, regulators have acted proactively to ensure quality and safety in the pharmaceutical market. In Malaysia, researchers are exerting pressure on the Health Ministry to issue stricter regulations for herbal and traditional medicines, citing the potential toxicity of such products, and the existence of strict controls in China, Hong Kong, Taiwan, and Singapore. The Indonesian Ministry of Industry has released plans for a new regulation that will supervise the use of local materials in pharmaceuticals, calling for a higher proportion of local content. Indonesia is heavily reliant on imported pharmaceutical materials, and the higher quota for local components is part of the government’s efforts to establish a domestic pharmaceutical industry with traceable materials.

Last week, JD.com embarked on a corporate restructuring program which will place increased business focus on customer experience. The move aims to make the company more responsive to customer needs and industry changes.

JD.com's board said the timing, terms and size of the share repurchases would be adjusted periodically.

For further information, please contact:
Ms. Cindy CUI
Tel.: + 86 21 5258 8005 Ext. 8253
Email: cindy.cui@duxes.cn