Salem Radio Network News Thursday, June 1, 2023


China’s to spin off industrial, property units in Hong Kong float

By Twinnie Siu and Scott Murdoch

(Reuters) -E-commerce firm Inc said on Thursday it planned to spin off its property and industrial units and list them on the Hong Kong Stock Exchange, the latest revamp in the Chinese technology sector after a sweeping regulatory crackdown. said it would continue to hold a stake of more than 50% in the units, JD Industrials and JD Property, upon completion of the proposed spin-off.

U.S.-listed shares of rose 6% on the news. They lost more than a third of their value over the past two years, caught in Beijing’s clampdown on the tech sector.

Rival Alibaba Group had earlier this week disclosed its own plan to split into six units and explore fundraisings or listings for most of them, marking the biggest restructuring in its 24-year history. said the size and structure of its units’ initial public offerings had not yet been finalised.

Two sources with knowledge of the floats said the two JD units are seeking to raise $1 billion each in the IPO. They declined to be identified as the information is confidential.

In their listing prospectuses filed later on Thursday, JD Industrials and JD Property disclosed annual revenues of 14.1 billion yuan ($2.05 billion) and 2.3 billion yuan, respectively.

This is not the first time has tried to reinvent itself.

The Beijing-based company spun off its logistics unit into a standalone entity in 2017 and then opened up its delivery and warehousing services to third-party companies.

Its business has struggled in the past few quarters due to strict COVID-19 curbs imposed by Beijing, which dented consumer confidence.

In January, said it was winding down its e-commerce business in Indonesia and Thailand, where it faced stiff competition from Sea Ltd-owned Shopee.

BofA Securities, Goldman Sachs and Haitong are the sponsors of the units’ IPOs. UBS and Citic Securities are the financial advisers for JD Industrials, while UBS is the financial adviser for JD Property.

($1 = 6.8700 Chinese yuan renminbi)

(Reporting by Twinnie Siu in Hong Kong, Scott Murdoch in Sydney and Tiyashi Datta in Bengaluru; Editing by Sharon Singleton, Maju Samuel and Sonali Paul)


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