Arkansas-based Wal-Mart Stores has nearly doubled its interest in Chinese online retailer, JD.com.
In June, the US retailer agreed to sell its Chinese online marketplace Yihaodian to JD.com, in return for a 5% equity in the Chinese company.
This transaction indicated that Wal-Mart is planning to sustain in the Chinese online market as an investor rather than trying to widen its online platform, reported The Wall Street Journal.
In a regulatory filing, Wal-Mart stated that it had increased its stake in JD.com from 5% to 10.8%. It does not have extra voting power with the acquisition of these shares.
Wal-Mart spokeswoman was quoted by the publication as saying: “The stepped-up investment in JD has been part of our plan, as we continue to be a passive investor. We believe this strategic alliance will help us grow e-commerce even faster in China.”
China is a difficult market for overseas firms to sustain.
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This market is dominated by domestic players such as JD.com and Alibaba Group Holding Ltd.
JD is supported by Tencent, a social networking company.