Asia Tech Wire (Apr 10) -- Chinese e-commerce giant JD.com Inc. (9618.HK) confirmed Wednesday that it will invest 1 billion yuan ($138 million) in cash in short-form video sector.

JD.com is recently focusing on internal discussions on how to lay out its short-video business, according to the latest market news.

In this regard, the top management of JD.com has organized several small discussions and formed a consensus, determining that it will make key investments in the short-video sector, with a cash subsidy in the amount of 1 billion yuan.

The company confirmed the news to several Chinese media on Wednesday, saying that JD.com has decided to invest 1 billion yuan in cash and 1 billion yuan in traffic as incentives to attract more original creators and high-quality content organizations.

JD.com said the company will subsidize original creators in the form of cash covering more than 20 creative fields such as digital 3C, home appliances and home furnishings, mother and baby, pets, fashion, sports, beauty and personal care, health, and car products.

Meanwhile, the e-commerce platform said it will bring more exposure opportunities for high-quality, original videos.

JD.com's Hong Kong-listed shares rose more than 4% early Wednesday after the news spread across the Internet.

TikTok's Chinese version Douyin, Kuaishou, and WeChat Channels have all gained a lot of traffic in the short-video sector in recent years and relied on the traffic to enter the e-commerce field.

The latest move also suggests that JD.com is trying to seize the opportunity to boost its e-commerce business through short videos.

At present, JD.com is actively preparing for the incubation of leading content creators and plans to select the top 100 creators by the end of the year.