Friday , November 27 2020

Although Liu Qiangdong is not guilty, Jingdong share price is damaged, but difficult to assess – Economic Observer Online – Professional Finance News Website

(Source: CNBC)

Economic Observer Online Reporter Qian Yujuan Internal Reporter Wang Yi Early in the morning of December 22, the Beijing era, Jingdong Group (JD.US), CEO Liu Qiangdart's study of the American-related sexual assault case was finally settled.

Freeman County prosecutor for Hennepin County, Minnesota, announced on December 21 that it was "a thorough study of the Minneapolis Police Department and a careful review of four prosecutors specializing in sexual assault. sexual assault in the east. The prosecution has decided not to sue Liu Qiangdong for sexual assault. "

Gan Guolong, a senior partner in the Shanghai Zhonghua Law Firm, told reporters that the conclusion is clear that evidence does not support the prosecution because the general case of celebrities will essentially go to the prosecution stage unless there is a private settlement.

The significant progress in this case meant that Liu Qiangdong was not guilty. Then, Jingdong Group official Weibo also issued a statement: "We welcome this decision, Jingdong Group will continue to provide the best service to customers and partners worldwide to create long-term value for investors."

When Liu Qiangdart's merger news was issued, the Jingdong Group's share price rose and increased by 10% to $ 21.90. Economic Observer Online reporter learned that from the end of the day, Jingdong closed at $ 21.08, up 5.88%. Stock prices also maintained growth after the session, up almost 3%.

Liu Qiangdong case was revealed on August 31. Three US law firms said they had investigated the case of Liu Dongarts misrepresentation of Liu Qiangdart's case. On September 5, the Jingdong share price fell by almost 11%. Later in Reuters long history, Liu Qiangdart's case in the US was even more After much detail, Jingdong's share price fell again to a new low and dropped more than 40%. Economic Observer Online reporter learned that on September 24, Jingdong US shares fell to as much as 8.14% eventually fell below $ 24.40.

In addition, Liu Qiangdong, who was involved in the case, missed important activities more than once. At the end of September, he did not attend the 2018 World Artificial Intelligence Conference in Shanghai. At a business leaders summit in October, he was not among invited people. In November, he also missed the World Internet Conference held in Wuzhen. At the 8th conference day, Jingdong's share price was close to 7% to close at $ 22.40.

Even on November 19, Jingdong Group released its Q3 results report. On the first trading day, began the Nasdaq Index to fall and the share price declined 8.42% and became the lowest since JD's 2014 stock exchange listing. Point, eventually Jingdong closed at $ 19.49, a step away from the $ 19 issue price. On the second trading day, Jingdong's share price declined again by 7.67%.

In fact, this persistent fall is not caused by poor financial results. The most direct factor is that the founder of the group, Liu Qiangdong, is still in turmoil of sexual assault.

The economic observer Online reporter noted that before "Liu Qiangdand's sexual assault in the United States" the case, Jingdong's share price was US $ 31.30 and the market value reached $ 45.3 billion. During the three-month development, rumors have repeatedly led to a decline in the Jingdong share price. As the dust closed, Jingdong's stock price closed at US $ 21.08, and its market value evaporated nearly $ 14.8 billion (about $ 100 billion).

Insiders analyzed that this case had no results more than three months later. This has had a very serious impact on Jingdong's share price and the development of JD. If the case is settled earlier, Jingdong will not have so much influence. It is worth examining why the case has not been closed for more than three months.

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