Beijing-based e-commerce outlet JD.com has seen its share price dip in trading today following the arrest and release of its CEO Richard Liu, over allegations of sexual misconduct in the US.
Though Liu’s lawyer is confident his client will not be charged, the JD.com boss returns to China with a degree of uncertainty that casts a shadow on the short-term success of his company. Though it is not clear whether he can cast decision-making votes without being physically present, Liu’s absence poses a practical dilemma as he holds an 80% stake in vote swing, in all the company’s decisions. Because of this, uncertainty over his future has made prospective investors more cautious, with this trend set to continue for China’s second largest e-commerce company, until a verdict is reached.
The company has since released a statement saying, “The local police quickly determined there was no substance to the claim against Mr Liu and he was subsequently able to resume his business activities as originally planned,” they added that legal action would be taken against “false reporting or rumors”.
John Elders, a spokesperson for Minneapolis police department stated, “We don’t know if there will be charges or not because we haven’t concluded an investigation.”
JD.com’s share price is down 25% since the start of the year, with shares currently trading $29.15, down $2.16 or 6.91% since markets opened
