THE WHAT? JD.com has announced that its board of directors has authorized a share repurchase program, under which the company may repurchase US$2 billion of its shares over the next two years.
THE DETAILS The company intends to purchase said shares either on the open market, via privately negotiated transactions or in block trades. Purchases will be funded through the e-commerce giant’s existing cash balance.
THE WHY? JD has announced share repurchase programs at regular intervals, although never before at this scale. One of the few to continue operation and report growth during the Covid-19 crisis, the company’s move is designed to inspire confidence.