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China’s JD.com in $2 Billion Buy-Back Bonanza Amid Market Turmoil

JD.com Inc. (JD), China’s leading technology driven e-commerce and retail infrastructure service provider, said Tuesday that its board of directors approved a program under which it may repurchase $2 billion of its shares over the next 24 months.

Under the proposed plan, repurchases may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations.

The e-commerce group is said to have hired Bank of America and UBS to work on a second listing on the Hong Kong Stock Exchange, to follow larger rival Alibaba Group Holding Ltd. (BABA), according to press reports on Monday. The majority of Wallstreet analysts provide the Chinese service provider with a buy rating and an average price target of $49.11. The company’s shares dropped 11.4 percent in U.S. trading closing at $35.24.

JD.com’s repurchase program will be funded from its existing cash balance, the company said in a statement.

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Sharon Wrobel
Sharon Wrobel is a journalist and writer with two decades of experience covering financial news in the U.S., Europe and the Middle East. Her work has appeared in global publications including The Financial Times, Bloomberg and The Jerusalem Post.

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