BlackRock's Bigger Stake Gives China's JD.Com a Boost
Xu Wei
DATE:  Feb 23 2019
/ SOURCE:  yicai
BlackRock's Bigger Stake Gives China's JD.Com a Boost BlackRock's Bigger Stake Gives China's JD.Com a Boost

(Yicai Global) Feb. 22 -- BlackRock, one of the world's largest asset managers, has increased its stake in JD.Com, transforming the shares of the Chinese e-commerce firm into a more attractive proposition for institutional investors.

New York-based BlackRock recently disclosed that it holds 70.4 million of JD.Com's Nasdaq-listed shares as of Dec. 31, representing 5.8 percent of its circulating stock, the overseas edition of the People's Daily reported on its website today. BlackRock held 32.55 million JD shares as of Sept. 30, according to data provider Xueqiu.

JD.Com's shares [NASDAQ:JD] plunged in the last quarter, almost falling below their initial public offering price of USD19 each. But from a low of USD19.21 in the quarter, the shares have gained more than 26 percent to USD24.27 as the Beijing-based company wins back market confidence.

Investment banks have also made positive signals on JD. World-renowned investment bank Goldman Sachs published a report on Nov. 26, reiterating its 'buy' rating, with a target price of USD42. Daiwa Securities Capital Markets also gave a 'buy' rating for JD after the latter released its third-quarter earnings report, believing that the share price was very attractive at the time.

JD is actively promoting internal organizational reforms to ensure rapid development of its diversified businesses. The firm confirmed on Feb. 19 that it will this year shed more than 10 percent of senior executives, including vice presidents and above.

The company emphasized that it is transforming into a 'small group with large businesses' to revitalize resources and boost vitality, escorting the development of diversified businesses to achieve quality growth. 

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Keywords:   JD.com,BlackRock