JD.com CEO Richard Liu cleared in US but Chinese e-commerce giant still faces challenges ahead – SCMP

What happened: US prosecutors have decided not to press criminal charges against Chinese retail giant JD.com’s CEO Richard Liu due to insufficient evidence. Liu had been under investigation since August after a 21-year-old female Chinese undergraduate student accused him of rape while he was attending a business program at the University of Minnesota. Liu would have faced a prison sentence of up to 30 years if convicted.

Why it’s important: The accusation against Liu, who controls the majority voting rights of China’s second largest online retailer, has made a dent on the company’s quarterly financial results. Shares of the Nasdaq-listed company slumped nearly 16% in two days after Liu’s arrest and the company reportedly lost 8.6 million annual active customers between June and September. The company has lost an additional 24% in value since then.

Nicole Jao

Nicole Jao is a reporter based in Beijing. She’s passionate about emerging trends, news, and stories of human interest within the world of technology. Connect with her on Twitter or via email: nicole.jao.iting@gmail.com.

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