Chinese online shopping giant JD.Com Inc. (ADR)(NASDAQ:JD) announced that it was looking into spinning off its internet finance business to enable the extension of the unit in China as it posted a drop in its fiscal third-quarter.
Meanwhile JD.com, is set to unload its complete stake in JD Finance to third-party Chinese investors that includes company chairman, Richard Liu.
The company said in a statement that, China’s 2nd-largest online retailer’s online finance subsidiary would be completely kept by Chinese investors after such a sale, letting it to swell its operations in certain licensed fiscal service trades in mainland China.
The Beijing-based firm said its 3rd quarterly drop had expanded by 51% to $121 million year over year. Revenue in the 3rd quarter was $9.1 billion, and is predicted to be between 75.0 billion and 77.5 billion yuan or $10.9 billion-$11.3 billion in the 4th quarter, the company said.
Furthermore China’s 2nd-largest online retailer, JD.com is one of numerous internet firms looking to tap credit demand among customer and small and medium-sized businesses in mainland China. JD.com and fellow majors Alibaba Group Holding Ltd. and Tencent Holdings Ltd have been increasing efforts to increase funds and grow their payment and digital-banking platforms.
JD Finance which was revealed in 2013, offers a range of fiscal services and products to consumers and small businesses in China. Previously it joined with U.S.-based ZestFinance to offer credit risk evaluation to Chinese companies.
The founder of JD.Com Inc(ADR)(NASDAQ:JD) online sales platform Mr. Liu, the founder of the online sales platform that sells everything from electronics to apparel, would likely participate in the sale by acquiring a minority stake in JD Finance, said. Mr. Liu would secure shares at the same market pricing as other investors and aims to own the majority of the voting rights in the finance unit after the sale, the company said.