Walmart sells $3.7b stake in JD.com to focus on China ops

Walmart said it is shifting its focus to its own operations in China.

Walmart has sold its entire $3.7b stake in JD.com, ending an eight-year investment in the Chinese e-commerce firm, Reuters reported.

The report said the U.S. retailer is shifting its focus to its own operations in China, citing strong growth in Walmart China and Sam's Club.

The sale comes amidst intense competition in China's e-commerce market, with companies like JD.com and Alibaba offering steep discounts that have squeezed profit margins. 

Walmart said the decision allows it to concentrate on its core businesses in China whilst maintaining a commercial relationship with JD.com, which continues to carry Walmart products.

Walmart initially invested in JD.com in 2016 by exchanging its Chinese online grocery store, Yihaodian, for a 5% stake in the company, later increasing its holdings to over 10%. However, JD.com's stock has fallen about 70% since its peak in early 2021, as growth slowed post-pandemic.