JD.com's Hong Kong shares plunged 5.9%, its steepest drop since November, after Beijing's market regulator summoned e-commerce platforms for misleading 618 festival discounts. Beijing flagged unclear disclosure of tens of billions of yuan in subsidies from companies and brands, signaling possible stricter promotion rules or penalties.
JD.com's Hong Kong-listed shares plunged 5.9% in intraday trading, marking their steepest decline since November after the Beijing market regulator summoned the company among other e-commerce platforms over misleading 618 festival discounts.
The Beijing branch of the State Administration for Market Regulation flagged a lack of clarity on tens of billions of yuan in subsidies, noting that JD.com and other platforms did not specify how much support came from their own budgets versus participating brands.
Investors will watch for potential penalties or stricter promotion rules that could limit aggressive discounting strategies and weigh on JD.com's margins, especially as competition remains intense in China's online retail sector.
