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Investing.com – JD.com ADRs (NASDAQ:JD) fell 0.5% in Wednesday’s pre-market trading despite the company’s announcement it would to boost its share buyback plan by 50%.
China’s second largest online retailer is now willing to spend up to $3 billion on buying back its shares, boosting its ongoing $2 billion repurchase exercise. The buyback will go on till March 17, 2024.
In a separate release, the company said it has taken a five-year, $2 billion loan to fund its green projects and other corporate purposes.
JD’s ADRs closed at $65.87 Tuesday, down 2.7%.
Shares of Chinese technology firms have tumbled over the last few months as investors, wary of increasing supervision by the country’s regulators, have dumped their holdings.
Today’s fall is in line with the recent weakness in Chinese technology shares. Tencent Holdings Ltd (HK:0700) stock closed 1.2% lower in Hong Kong today, while Alibaba (NYSE:BABA) fell 2.6%.
Last week’s move by Tencent Holdings (OTC:TCEHY) to cut its holding in JD.com and distribute its shares to its own equity holders have also kept the retailer’s shares under pressure.
Proposed rules in China that will bar foreign investment in certain sectors while also increasing scrutiny of firms seeking to sell shares overseas are also weighing on shares of its companies.
