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STORY: Walmart has sold its entire stake in China's JD.com, according to a source.

It was the biggest shareholder in the e-commerce firm, but now exits its eight-year investment to focus on its own Chinese operations.

The source said a placement of the Walmart shares was fully subscribed, and at the top end of the offered range would be worth $3.74 billion.

The U.S. retail giant said it plans to double down on its warehouse business Sam's Club in China after the stake sale.

The move also shows the country's e-commerce sector has lost its appeal to investors.

It's due to firms struggling with poor margins as they face brutal price competition and weak consumer demand.

Shares of JD.com have fallen around 70% from their peak three years ago.

Prices have also changed little from the levels in 2016 when Walmart became its major shareholder.

JD.com said in a statement it was "full of confidence in the future cooperation between the two sides."

The company's Hong Kong-listed shares fell more than a tenth Wednesday (August 21).

China's retail market has been hit by a downturn in consumer confidence.

That was sparked by a property market slowdown and concerns about employment and incomes.

Major e-commerce firms, including JD.com and rivals Alibaba and Pinduoduo, have engaged in a brutal price war to get consumers to buy.

But the tactics have pressured revenue growth and margins.