Asia’s largest Internet operator Tencent (TCEHY) has invested $214.7 million into JD.com, which is the No. 2 ecommerce company in China. The deal gives Tencent a 15% equity stake. It will also likely boost the demand for the upcoming IPO of JD.com — and, of course, have a big impact on some Chinese stocks.
JD.com is kind of like Amazon (AMZN). Both companies offer a broad assortment of products at attractive discounts using a sophisticated supply chain. This is in contrast to Alibaba, which generally does not warehouse inventory, and is more is similar to eBay (EBAY).
JD.com will be one of the largest Chinese stocks on the U.S. market. The estimated value should be more than $10 billion. But this pales in comparison to Alibaba, which is considered to be worth more than $150 billion. Read