Wal-Mart has increased its investment in China's JD.com, boosting its stake in the Chinese e-commerce giant.

The Arkansas-based retailer has poured in more resources to its venture in China’s second biggest e-commerce website, as it aims to acquire more market share in the world’s largest online market.

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The document filed with the Securities and Exchange Commission disclosed that Wal-Mart raised its holding to 10.8 percent from 5.9 percent, while JD climbed 7.5 percent in extended trading in the United States.

The latest deal is part of Wal-Mart's move towards acquiring new assets, including the $3.3 billion purchase of e-commerce startup Jet.com in August.

Meanwhile, the stock share of JD increased by over 5.5 percent at a share price of $29.52 in New York.

The deal between Wal-mart and JD.com will allow the American retail company to have observer status at JD.com’s board meetings, according to Wall Street Journal. 

“The stepped-up investment in JD has been part of our plan, as we continue to be a passive investor," Walmart spokesperson Jo Warner said. "We believe this strategic alliance will help us grow e-commerce even faster in China.”

The American retail company is trying to enhance its business operations in China, which is lucrative and challenging at the same time.

With JD.com’s online resources, it is expected that the company would be able to capture a bigger pie of the online shopping market. Wal-mart believes that China is the key to strengthen its global online business, Business Insider reported. 

In China, Wal-Mart’s operation has reportedly becom slow and uneven amid the fact that it already has 400 stores in the country for 20 years now. As the company partners with JD.com, a company backed by Tencent, Wal-Mart is optimistic about making its online venture in China successful. 

TagsWal-Mart, china, JD.com, Tencent, Alibaba, online shopping, e-commerce, chinese e-commerce, retail company, Walmart