Sunday , January 29 2023

Although Liu Kiangdong is not guilty, Jingdong's stock price is damaged, but it is difficult to estimate – Economic Observer Online


(Source: CNBC)

Economic Observer Online Reporter Kian Iujuan Intern Wang Ii In the early hours of December 22, in Beijing, the trial of the Jingdong Group (JD.US), Liu Kiangdong, was finally resolved by a case of sexual abuse in the United States.

District Prosecutor Freemann of Hennepin, Minnesota, announced on December 21 that it was "a thorough investigation by the Minneapolis police and a careful consideration by four prosecutors specializing in cases of sexual abuse." There are serious probative issues (inadequacy) in case of doubt sexual abuse in the east The prosecution has decided not to sue Liu Kiangdong for sexual assault.

Gan Guolong, senior partner of the Shanghai Zhonghua Law Office, told reporters that the conclusion is clear that the evidence is not supported by the prosecution, as the general case involving celebrities will basically go to the prosecution's step if it is not a private settlement.

Significant progress in this case meant that Liu Kiangdong was not guilty. Subsequently, the Veibo Group's Jingdong Group also issued a statement: "We welcome this decision, the Jingdong Group will continue to provide the best service to its customers and partners around the world in order to create long-term value for investors."

When Liu Kiangdong's release news was published, the Jingdong Group's stock price rose 10% to $ 21.90. Economic observer Online journalist learned that at the end of the day, Jingdong closed at $ 21.08, up 5.88%. Share prices also maintained post-session growth, an increase of nearly 3%.

The case of Liu Kiangdong was discovered on August 31st. Three US law offices said they had investigated the case of Liu Kongdong's case in Liu Dongdong on September 5, the price of Jingdong dropped by nearly 11%. After many details, Jingdong's stock price fell again to a new low, falling more than 40%. The Economic Observer Online Report found out that Jingdong's shares in the United States fell by as much as 8.14% at the end of September 24, once they fell below $ 24.40.

In addition, Liu Kiangdong, who was involved in this case, has missed important activities several times. At the end of September, he did not attend the World Artificial Intelligence Conference in Shanghai in 2018. At the summit of business leaders in October, he was not among the invited. In November, the World Internet Conference was held in Vuzhen, and on the opening day of the conference, the price of Jingdong shares fell by almost 7% and ended at $ 22.40.

Even on November 19, Jingdong Group released its earnings report in the third quarter, however, on the first day after that, the Nasdak index began to fall, and the stock price dropped by 8.42%, becoming the lowest since JD 2014 IPO. Point, at the end of Jingdong closed to $ 19.49, one step further than asking price of $ 19. On the second trading day, the price of Jingdong fell again by 7.67%.

In fact, this continuous decline is not caused by poor financial results. The most direct factor is that the founder of the group, Liu Kiangdong, is still in the whirl of sexual abuse.

The Economic Observer Online report noted that before the case of "Liu Kiangdong Sexual Abuse in the United States," the price of Jingdong was $ 31.30, and its market value reached $ 45.3 billion. During the three-month development period, rumors repeatedly caused a decline in the price of Jingdong's action. Of the dust, Jingdong's stock price closed at $ 21.08, and its market value evaporated nearly $ 14.8 billion (about 100 billion yuan).

The insiders analyzed that this case had no results more than three months later, which had a very serious impact on the price of Jingdong shares and the JD's development. Jingdong has such a big influence. It is important to investigate why the case has not been closed for more than three months.

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