Bulletin: JD.com Expands Funding Sources With Hong Kong Secondary Listing

HONG KONG (S&P Global Ratings) June 17, 2020--S&P Global Ratings said today that JD.com Inc.'s (BBB/Stable/--) secondary listing in Hong Kong will increase its funding sources at a time when Chinese companies' access to U.S. equity markets could be curbed. The Chinese e-commerce group is set to raise about HK$30 billion via the listing on June 18, 2020. We believe the listing is moderately positive for JD.com's debt leverage and risk mitigation. Proceeds will add to the company's cash and cash equivalents of Chinese renminbi (RMB) 43.5 billion as of March 31, 2020. However, an upgrade is more likely to occur if the company strengthens its competitive position by increasing product diversity and profitability than if it reduces debt leverage.

...June 17, 2020 HONG KONG (S&P Global Ratings) June 17, 2020--S&P Global Ratings said today that JD.com Inc.'s (###/Stable/--) secondary listing in Hong Kong will increase its funding sources at a time when Chinese companies' access to U.S. equity markets could be curbed. The Chinese e-commerce group is set to raise about HK$30 billion via the listing on June 18, 2020. We believe the listing is moderately positive for JD.com's debt leverage and risk mitigation. Proceeds will add to the company's cash and cash equivalents of Chinese renminbi (RMB) 43.5 billion as of March 31, 2020. However, an upgrade is more likely to occur if the company strengthens its competitive position by increasing product diversity and profitability than if it reduces debt leverage. We expect JD.com to invest the proceeds from the share listing in supply chain technology. Our forecast of the company's capital expenditure for 2020 is about RMB15 billion but we believe it could accelerate its investments. JD.com is...

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