Why JD.Com Stock Hit A New 52-Week Low Today

JD.Com Inc JD shares are trading lower by 2.2% to $29.73 Monday afternoon. Shares of several Chinese stocks are trading lower amid concerns over the country's property sector following reports suggesting China Evergrande said it's unable to issue new debt due to an ongoing investigation into its Hengda Real Estate subsidiary.

Economic uncertainty and concerns about the property market can lead consumers to cut back on discretionary spending, including online retail purchases. If Chinese consumers become more cautious about their finances, JD.com may experience a slowdown in sales growth.

JD.com also sells a wide range of products, including electronics and appliances, which are considered big-ticket items. A shaky property market can deter consumers from making significant purchases, directly affecting JD.com's sales of these products.

What's Going On?

Evergrande, the beleaguered Chinese property developer, said Friday that it was cancelling a creditor meeting scheduled early this week. It said that “sales had not been as expected”.

The announcement is the latest in a series of scandals to hit the Chinese financial behemoth. Mid-September, the domestic regulator approved a 50% sale of its insurance business China Evergrande Life into a special purpose vehicle owned by the Chinese state to free up cash.

Then last week, staff in the company’s wealth management division were detained by Shenzhen police...Read More

According to data from Benzinga Pro, JD.Com has a 52-week high of $67.10 and a 52-week low of $29.35.