JD.com Is the Apparent Victim of a Malicious Short-Selling Attack -- Yet Its Shares Rise
Yicai Global
DATE:  Jun 14 2017
/ SOURCE:  Yicai
JD.com Is the Apparent Victim of a Malicious Short-Selling Attack -- Yet Its Shares Rise JD.com Is the Apparent Victim of a Malicious Short-Selling Attack -- Yet Its Shares Rise

(Yicai Global) June 14 -- APS Asset Management Pte. Ltd. outed its second short-selling report targeting JD.com Inc. [NASDAQ:JD] on June 13.

After the report's publication, however, JD.com stock price unexpectedly rose, showing investors rejected its assertions.

The organization issued a similar short-selling report last June, causing JD.com's stock price to plunge, but one year later, the e-commerce platform was back in the black, its stock price hit a high of USD44, and its market capitalization reached almost USD60 billion. This latest report claimed that JD.com's market capitalization would reprise the Dutch Tulip Bubble in the 17th century, in danger of bursting at any time. It warned that Hillhouse Capital Group sequentially sold 44 million JD.com shares (about USD1.8 billion) over the last three quarters after former JD.com chief executive Haoyu Shen joined Hillhouse Capital. In addition to disparaging JD.com's market capitalization, the report expressed its even greater concern over the future of its vigorous development of direct sales. Continued optimism about JD.com is unreasonable, since direct sales in its computers, communications, consumer electronics and household appliance business are barely profitable because of low profits and fierce price competition, per the report.

JD.com's stock price closed at USD39.27 on June 13, up 0.13%.

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Keywords:   JD,APS Asset Management,Market