China’s JD.com announces $5 billion share buyback plan

(Reuters) – JD (NASDAQ:).com said on Tuesday its board has approved a new $5 billion share repurchase program, effective September, allowing the Chinese e-commerce giant to buy back its stock over the next 36 months.

U.S.-listed shares of the company jumped 5.1% in premarket trading.

JD.com is staring at stiff competition in the Chinese e-commerce sector, with all major companies ramping up promotions and discounts to woo cash-strapped consumers amid muted recovery in the world’s second-largest economy.

Earlier this month, big-box retailer Walmart (NYSE:) sold its entire roughly $3.7 billion stake in JD.com, ending an eight-year investment in the company as it was yielding waning returns.