CEO Morning Brief

China's to Spin Off Industrial, Property Units in Hong Kong Float

Publish date: Fri, 31 Mar 2023, 08:52 AM
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TheEdge CEO Morning Brief
China's to spin off industrial, property units in Hong Kong float

HONG KONG (March 30): Chinese 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.

Upon completion of the proposed spin off of JD Logistics and JD Property, said it would continue to indirectly hold more than 50% of the shares in both units which will remain as subsidiaries of the company.

US-listed shares of rose 7% in early trading on Thursday after falling nearly 26% this year, as of last close.

The revamp comes a day after bigger rival Alibaba Group said it was planning to split into six units and explore fundraisings or listings for most of them, marking the biggest restructuring in its 24-year history.

The size and structure of units' initial public offering have not yet been finalised.

This is not the first time has gone for a revamp of its business.

The 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.

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

Source: TheEdge - 31 Mar 2023

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