|Bid||85.19 x 1100|
|Ask||85.24 x 900|
|Day's Range||84.60 - 87.46|
|52 Week Range||32.70 - 92.77|
|Beta (5Y Monthly)||0.91|
|PE Ratio (TTM)||579.52|
|Earnings Date||Aug 11, 2020 - Aug 17, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||98.72|
JD.com (NASDAQ: JD), the largest direct retailer in China, is currently in the process of spinning off three of its non-core businesses via IPOs: JD Health, JD Digits, and JD Logistics. JD Health, which the company has already closed the books on, will start trading in Hong Kong on Dec. 8. JD Digits filed its IPO in Shanghai in September, but tighter fintech regulations have postponed its debut.
(Bloomberg Opinion) -- Three cheers for the U.S. House of Representatives for passing a bill that could kick out Chinese companies listed on American exchanges. The tens of thousands of financial worker bees who have built their careers trading and servicing behemoths like Alibaba Group Holding Ltd and JD.com Inc. can finally get some sleep at night.Nearly a decade ago, I started my journalism career with Barron’s, the financial investment magazine. Based in Hong Kong, I would work well into the night calling emerging markets fund managers in New York, asking them for their views on China and their stock picks. Often, I went to bed at 2 AM. I was no exception. Ringing the Nasdaq bell used to be every Chinese tech company’s Holy Grail and hundreds have managed to snag a prestigious listing in one U.S. exchange or another. But that meant that Asia-based investors had to be vigilant at night in their quest to buy into the “China dream” being traded in the U.S. daytime. The time zones are halfway around the world from each other. Few went to sleep before New York trading began, and some habitually woke up in the middle of the night checking markets on their phones. Now, the dynamic could change. If U.S.-listed Chinese companies have no choice but to “return home,” they can’t, of course, be bought or sold in New York or other U.S. exchanges. But many of the Chinese blue-chips have secondary listings in Hong Kong so stockholders should hold on to their shares because that’s how they can continue to chase the China dream. Hong Kong will be where the trading will flow.And the activity is bound to grow, despite being exiled from the U.S. That’s because mainland investors will be allowed to buy into the secondary listings via the Hong Kong Stock Connect, which links the city’s exchanges to those in Shanghai and Shenzhen. Right now, Hong Kong already hosts 29% of Alibaba’s outstanding shares, versus 22% a year ago, exchange data show. Why would Chinese companies want to be listed in the U.S., anyway? Prestige is intangible and fleeting. Five years ago, the more solid arguments were that the mainland exchanges lacked depth, or that Hong Kong was too obsessed with profitability, a requirement that discriminated against tech firms that had little yet to show but lots of potential. Those factors have changed dramatically because of listing rule changes in Hong Kong. A lot of trading in Chinese companies has already shifted from New York to Asia.The ostensible reason for the U.S. ban — which passed the Senate months ago and will become law if and when Donald Trump signs the legislation — are the accounting scandals that have plagued Chinese companies. The Securities and Exchange Commission blames them on Beijing’s refusal to allow the Public Company Accounting Oversight Board — an auditor of auditors set up after the Enron scandal — to inspect the work papers of its U.S.-listed Chinese companies.While shifty accounting is certainly part of the problem, many fund managers based in New York never really looked deeply into where they were sinking their money. Distance is a factor. How would someone sitting in Park Avenue have any sense of what’s happening on the ground in China? Consider Luckin Coffee Inc., the disgraced Chinese coffee chain. Mainland investors never bought into the Luckin story; many said it was not B2B, or B2C, but business to “dumb-ass American money.” But Luckin figured out how to latch onto an emerging markets investment theme favored by American investors and raised over $1.6 billion in the U.S. Imagine: a morning cup much cheaper than Starbucks Corp, served to millions of Chinese who are switching from tea to coffee!There are plenty of other examples of U.S.-based investors getting burned because they weren’t paying attention to facts on the ground in China. Qudian Inc., a fintech based in Xiamen, had a $1 billion IPO on the NYSE in October 2017, but tumbled shortly after because Beijing decided to cap the interest rate lenders could charge to consumers. Chinese education stocks were all the rage in the U.S. until August 2018, when China decided to amend rules governing the country’s lucrative private education sector.The point is, China is an emerging market with fast and furious credit cycles and new regulations springing up alongside nascent industries. While Asia-based investors don’t know what’s on President Xi Jinping’s mind either, they at least have a better sense, having breathed the air and tried out all the new apps and concepts. Plus, new regulations in China never just come out of nowhere: They are often responses to social outcry over local problems. Investors in Asia can sense this in the atmosphere and thus have better risk control. To be sure, with the incoming Joe Biden administration, there might be compromises and conciliations in the implementation of the new bill. But Wall Street shouldn’t feel optimistic about business remaining as usual. China’s new securities law, which came into effect in March, states explicitly that overseas regulators can’t directly inspect or collect evidence on Chinese soil. Beijing considers this a sovereign issue. Chinese companies are coming home, whether you like it or not. In journalism, it’s valuable being on the ground. Shouldn’t that be the case with finance as well? If only to avoid pitfalls, it shouldn’t be this easy for Americans to purchase Chinese stocks. Visit the country and see what’s happening. To buy China, you need to work in its time zone.(Corrects spelling in the name of the Public Company Accounting Oversight Board in paragraph 7)This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The logistics unit of China's second-biggest e-commerce platforms has invited investment banks to submit proposals for an initial public offering (IPO) in Hong Kong, becoming the latest arm of JD.com's stable of companies to tap the stock market for capital.Multiple banks have submitted proposals to help JD Logistics raise capital, eager to work on what is likely to be one of the largest equity sales in 2021, according to a person familiar with the process, declining to be named. Reuters reported the IPO could raise US$3 billion, although bankers said it's still too early in the process to put a value on the fundraising.Get the latest insights and analysis from our Global Impact newsletter on the big stories originating in China.JD Logistics was created in April 2017 as a separate business unit under JD.com, using the company's widespread fulfilment network to provide integrated supply chain and logistics services to third party companies, including warehousing, transport, delivery and after sales services. It also provides logistics technology such as cloud-based services and data analytics to third-party clients.Workers sort out packages for delivery at JD's Yizhuang Smart Delivery Station in Beijing on November 11, during the Singles' Day shopping festival. Photo: Simon Song alt=Workers sort out packages for delivery at JD's Yizhuang Smart Delivery Station in Beijing on November 11, during the Singles' Day shopping festival. Photo: Simon SongJD Logistics' prowess was on display during Singles' Day, the world's largest shopping extravaganza, when shoppers rang up bills worth a record 271.5 billion yuan (US$41.4 billion) between November 1 and 11 on JD.com. JD Logistics competes with Cainiao, the logistics unit of this newspaper's owner Alibaba Group Holding.JD Logistics operated more than 800 warehouses in China, with an aggregate gross floor area of about 20 million square metres (215.3 million square feet) as of September 30.Since October 2018, JD Logistics has delivered parcels to consumers within city limits and across China. It also has an agreement with China Railway Corporation to use the country's high-speed train network for same-day delivery of high-end goods across China, with JD Luxury Express making the last- mile delivery.Logistics and other services have steadily accounted for larger portion of JD.com's revenue, from 1.4 per cent in 2017, according to JD.com's most recent annual report. Revenue from logistics and other services rose to 23.5 billion yuan last year, or about 4.1 per cent of JD.com's total revenue. Logistics and other services jumped 73 per cent to 10.4 billion yuan in the third quarter, about 6 per cent of its overall revenue in the period.JD.com's driverless delivery vehicles. Photo: AFP alt=JD.com's driverless delivery vehicles. Photo: AFPIn August, JD Logistics said it would roll out 100 unstaffed vehicles in Changshu city in Jiangsu province and have up to 100,000 of the "autonomous robots", which look like minivans, on the nation's streets within five years. The company raised US$2.5 billion from third-party investors by issuing Series-A preferred shares in 2018, giving them about 19 per cent of the company. JD.com remains the logistics unit's controlling shareholder.The business is headed by Zhenhui Wang, who joined JD.com in 2010 and has served as CEO of the logistics arm since its founding in 2017. He previously served as general manager of JD.com's North China region, head of its smart devices business and head of fulfilment operations.JD.com did not respond to a request for comment on JD Logistics' IPO plans immediately.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.