(Yicai Global) July 20 -- China's leading online retailer, JD.com Inc. [NASDAQ:JD], and well-known e-commerce company Vipshop Holdings Ltd. [NYSE:VIPS] have both denied recent rumors that they are planning to merge.

An online media outlet reported yesterday that the groups were planning a merger through secret negotiations, and that the talks had reached a substantive stage.

The rumors are totally baseless, the 21st Century Business Herald quoted Huang Hongying, vice president at Vipshop, as saying yesterday in response. JD.com also dismissed discussions on a merger as unfounded tittle-tattle.

The two firms have mutually-complementary market positioning. Vipshop specializes in fashion products, and more than 80 percent of its customers are female. JD.com focuses on 3C (computer, communication and consumer electronics) products and electrical appliances, and most of its users are men.

The timing isn't right for such a deal, a source at Vipshop pointed out. "Vipshop is well in the black now, and is not under any cash flow pressure. Furthermore, it's just restructured its internal finance and logistics operations, so at least the senior management shouldn't be willing to merge."