It's true? It's true, this consumption was paid for by the person who escaped slowly
r/wallstreetbets •9 days ago
dqzou
Keep away from JD, it may be the next Silicon Valley Bank
I am not an employee of the company. But according to some concerning information I've gathered from the Chinese internet, this company may be facing the risk of a liquidity crisis, where rapid withdrawals by its users and clients could lead to a same result as the Silicon Valley Bank
According to the information I have gotten, the timeline should be like below:
1. JD.com hired a highly controversial talkshow actress as a brand spokesperson.
2. This led to dissatisfaction among its mainstream e-commerce users, who began initiating mass refunds, leaving negative reviews of the goods, canceling memberships, and requesting invoices (it's a China featured practice because typically the companies do tax evasion by not issueing the invoice but requesting invoices will force the
company to pay taxes, which will make the net income of the company decline). Some users also started withdrawing
their deposits from the company's financial products.
3. It seems that JD.com's financial products have restricted users' withdrawals; I saw screenshots online showing users
facing withdrawal limitations and some withdrawal requests were rejected or failed.
4. JD.com's financial products published a statement, denying that they were facing a bank run, but some users noticed that when transferring money from the JD finance app to other apps, the source of funds had been changed to a Bank in China instead of the JD finance product, and I have seen screenshots confirming this. Others claimed there were multiple banks involved, but I haven't seen screenshots of that. So far I have only seen one bank.
5. JD.com issued an official apology on Weibo (China's twitter), but users thought it insincere and continued to request
refunds, leave negative reviews, and withdraw fund...
6. JD Finance sent text messages to all users, telling them that the company was not facing a bank run, but this action
inadvertently made more people aware of the potential risks.
refunds and even mocking and insulting customers; I even saw a representative cursing at a customer's mother.
Anyway I don't know if the company will bankrupt as soon as the SVB (in 48 hours), after all this company is not a pure
financial company and it generetes cash flow from its e-commerce biz. But I am sure even even if the company can
manage to survive this bank run, it is destined to lose a significant number of loyal users. After all, if you were insulted and
cursed by a customer service representative of an e-commerce company, would you continue to use it?