JD.com selloff brings ‘enhanced buying opportunity,’ says Citi

Citi analyst Alicia Yap says JD.com shares are down over 10% over the past two days in response to reports the company will kick off a RMB 10B subsidy program to re-establish its competitive positioning as a "low prices" platform. The analyst believes investors might have overreacted to the news as subsidies are likely to be shared/co-promoted with brands/suppliers/merchants and unlikely to be fully reflected in JD’s financials. Citi sees the selloff as an "enhanced buying opportunity."