Why JD.com Shares Are Trading Lower Today

Shares of several Chinese companies, including JD.com Inc JD, are trading lower in reaction to new Chinese cybersecurity rules set to take effect in February.

Beginning Feb. 15, the Cyberspace Administration of China (CAC) will implement new rules requiring internet companies with data from more than 1 million users to undergo a network security review before listing on public markets overseas.

According to the CAC, the rules are aimed at companies that carry out data processing activities which could affect national security.

Once the Chinese regulator determines that a company's data processing activities do not threaten national security, the company can move forward with an overseas listing. 

See Also: Why Ford Shares Are Making New 52-Week Highs Today

JD.com is China's second-largest e-commerce company after Alibaba in terms of transaction volume, offering a wide selection of authentic products at competitive prices, with speedy and reliable delivery. 

JD Price Action: JD.com has traded as low as $61.65 and as high as $108.29 over a 52-week period.

The stock was down 6.64% at $63.75 at time of publication.