Chinese e-commerce company JD.com (JD) has announced a new $5 billion U.S. stock buyback program.
The company announced that its board of directors has approved the share repurchase program that will begin this September and continue over the coming 36 months.
The new stock buyback program arrives a week after JD.com issued second-quarter financial results that largely beat Wall Street forecasts.
This is the second stock buyback program announced by JD.com this year. The company previously undertook a $3 billion U.S. share repurchase in March.
Other prominent Chinese technology companies have also announced big stock buybacks this year to appease shareholders as sales slump and their stock prices sink.
Rival e-commerce company Alibaba (BABA) announced a $25 billion U.S. share repurchase program in February of this year.
JD.com’s new stock buyback program also comes after Walmart (WMT) recently sold its entire $3.7 billion U.S. stake in the company as it focuses on its own operations within China.
The stock of JD.com is up 5% on news of the new share repurchase. In the last 12 months, the company’s stock has fallen 24% to trade at $25.80 U.S. per share.
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