Incident raises concerns among Chinese companies listed in US
The arrest and release in the United States of Liu Qiangdong, the founder and CEO of Chinese e-commerce giant JD, will have an impact on his company and raise concerns among Chinese firms listed in the US, according to industry insiders.
"If the US law firms verify that JD failed to disclose information pertinent to Liu's arrest, the online retailer will be punished by the US Securities and Exchange Commission. If Liu, as the actual controller of JD, was judged to be guilty, the daily operation of JD would be severely affected," said Shen Meng, director of boutique investment bank Chanson& Co.
Liu owns 15.5 percent of JD's stock and controls nearly 80 percent of the company's voting rights. Shen said such a corporate governance structure will have an impact on the whole company if negative news involved its top executives.
