The world's biggest retailer Wal-Mart announced that it will transfer its online Yihaodian operations in China to JD.com.

Under the deal, JD.com will take ownership from Wal-Mart Stores of the Yihaodian brand, website and app, while Wal-Mart will receive about five percent of JD.com's total shares.

The deal is expected to benefit both sides in China's retail market.