(Reuters) – JD.com said on Tuesday its board has approved a new $5 billion share repurchase program, effective September, allowing the Chinese e-commerce giant to buy back its stock over the next 36 months.
U.S.-listed shares of the company jumped 5.1% in premarket trading.
JD.com is staring at stiff competition in the Chinese e-commerce sector, with all major companies ramping up promotions and discounts to woo cash-strapped consumers amid muted recovery in the world’s second-largest economy.
Earlier this month, big-box retailer Walmart sold its entire roughly $3.7 billion stake in JD.com, ending an eight-year investment in the company as it was yielding waning returns.
(Reporting by Deborah Sophia in Bengaluru; Editing by Shilpi Majumdar)
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