BEIJING – Shares in JD Logistics, the logistics arm of Chinese e-commerce giant JD.com, rose on Friday as the company debuted on the Hong Kong Stock Exchange.
JD Logistics was up 11.99% in the first few moments of its Hong Kong debut on Friday.
China’s vast network of warehouses and deliverers has given JD a competitive edge over rival Alibaba as the Beijing-based company can deliver products to millions of customers the same or next day.
JD Logistics raised $ 3.2 billion after going public Pricing its shares at 40.36 Hong Kong dollars each on the lower end of the expected range.
An employee inspects an order at a JD.com delivery station in Yizhuang, Beijing, during the coronavirus outbreak.
Hilary Pan | CNBC
The unit’s listing is the latest in a row for the parent company after JD.com itself went public in New York and subsequently completed a secondary listing in Hong Kong. The company’s health unit, JD Health, was also listed in Hong Kong in December.
“Any failure to keep a stable and committed workforce could cause disruption or delays in our services,” the company warned, noting that the overall labor market is tightening and wages are rising.
Another risk is the strong dependency on the state of the parent company JD.
JD Logistics has tried to sell its delivery services to third parties. So far, however, sales and business have been tied to JD, which accounted for more than 50% of the logistics unit’s sales last year.