JD.com announces separate listing plans for JD Industrials and JD Property

JD.com announced a spin-off, and separate listing plans for JD Industrials and JD Property, as tech companies move toward more agile and nimble operation models to allow a quicker response to market demands.

The specific timing and the size of the listing of JD Property and JD Industrial units have not yet been revealed.

JD.com said it plans to hold on to over 50 percent of each company upon completion of the listing.

JD said in the stock exchange filings on Thursday, that the proposed spin-off could better reflect the value of these affiliates on their own merits and increase their operational and financial transparency.

It added investors would be able to appraise and assess the performance and potential of the independently listed entities separately and distinctly from those of JD Group.

The announcement coincides with the much discussed restructuring of Alibaba into separate business entities made public earlier this week.

Two previous JD affiliates, JD Health and JD Logistics, went public in December 2020 and in May 2021 respectively.

JD's Hong Kong listed shares closed up 5.39 percent to HK$172 (US$22) on Friday.

The new listing rules at the Hong Kong stock exchange, effective from March 31, made it easier for specialist technology companies to raise capital at a lower revenue threshold.

Companies in some technology fields that haven't yet generated revenue will be able to file listing applications in Hong Kong according to updated listing rules.

Market watchers estimate more revamps in the Chinese technology sector are expected.