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JD.com shares surge after Chinese e-commerce operator’s plan to spin off and list property, industrial units in Hong Kong
- JD.com rose 5.4 per cent in Hong Kong following a 7.8 per cent gain on Nasdaq overnight, as investors cheer plans to spin off and list its property and industrial units
- The move is positive and will enhance efficiency and help the subsidiaries realise their potential, said Kenny Wen of KGI Asia
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Shares of JD.com jumped after the e-commerce major said it would spin off its property and industrial units and list them in Hong Kong, joining Alibaba Group Holding in unveiling the latest restructuring of China’s technology giants.
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JD.com surged as much as 8.1 per cent before paring gains to 5.4 per cent to HK$172.00 on Friday. The company’s American depositary receipts gained 7.8 per cent on Nasdaq overnight.
Beijing-based JD.com proposed spinning off its subsidiaries JD Property and JD Industrials and separately list them on the Hong Kong stock exchange, according to two separate filings on Thursday night.
After the spin-offs, JD.com will continue to hold more than 50 per cent stake in the two units.
The move came days after rival Alibaba, the largest technology conglomerate in China, announced that it would overhaul its US$257 billion empire and split them into six units, its biggest restructuring since its founding two decades ago.
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Alibaba will reorganise its businesses into six independently run entities: Cloud Intelligence Group, e-commerce under Taobao-Tmall, smart logistics operations under Cainiao, Local Services Group, Global Digital Business Group, and Digital Media and Entertainment Group, according to a letter to employees on Tuesday. Alibaba owns the South China Morning Post.
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