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China Logistics Chairman Li Shifa and private equity firm RRJ Capital have put more than 50% of the firm up for sale, seeking a valuation of about $2 billion, according to the report.
Shares of China Logistics surged nearly 14% in Hong Kong trading earlier on Thursday before they were suspended, pending inside information from the company.
The companies have not made a final decision, and talks could still fall apart, according to the report. JD and China Logistics did not immediately respond to Reuters requests for comment.
JD.com has benefited from a spike in online shopping due to the COVID-19 pandemic. Its strategy of holding inventory and having full control of its in-house delivery network has also helped it compete with larger rival Alibaba (NYSE:BABA) Group, which outsources its logistics operations to third-party firms.
Earlier this week, JD told investors it does not expect any business impact from a wave of regulations hitting the Chinese industry, after beating analysts’ expectations for the quarter through June.
