By Dhirendra Tripathi
Investing.com – ADRs of JD.com (NASDAQ:JD) traded 2% lower in premarket Thursday after the company said its founder Richard Liu has stepped down as chief executive officer.
Xu Lei, who was recently promoted to president after more than a decade, takes the helm at China’s second largest online marketplace immediately.
Liu’s lieutenant joins JD’s six-member board while Liu remains chairman, the company said in a filing Thursday. Liu has a nearly 14% stake in the retailer, according to Reuters.
JD.com had a market cap of over $90 billion at close Wednesday. The stock is down over 29% in the last year, still escaping the burn at most Chinese shares.
While most Chinese tech and online firms have been hit by the sweeping campaign to rein in Big Tech in the mainland, the company has benefited by complying with the new rules. It has added new or seen the return of brands like Starbucks (NASDAQ:SBUX) and Estée Lauder (NYSE:EL) to its platform.
Liu will continue devoting his time to guiding the company’s long-term strategies while mentoring younger management, JD said in its statement.