Noah Holdings Ltd., one of China’s largest wealth managers, has levied accusations of fraud against e-commerce leader JD.com and Camsing International Holding Ltd., a Hong Kong-listed company whose chairman was detained by police last week.
According to Bloomberg, Noah has filed a lawsuit against both Camsing and JD.com, and reported Camsing to regulators, in relation to a 3.4 billion RMB ($490 million U.S.) asset management product that’s in danger of default. The product is backed by accounts payable from JD.com subsidiary Beijing JD Century Trade Holdings Ltd. In a statement on Tuesday, JD.com denied any involvement.
“Camsing falsified JD.com’s business contracts, engaging in fraudulent behavior,” a spokesperson said.
CEO Richard Liu and JD.com itself were named as defendants in a civil lawsuit filed in April, stemming from accusations of rape leveled at the prominent Chinese billionaire. The civil case came four months after prosecutors declined to pursue a criminal case. According to the lawsuit, both Liu and his company were named as defendants because Liu’s actions were enabled by JD.com.
JD.com’s second-hand goods trading platform PaiPai underwent a strategic merger with electronic product recycling platform AiHuiShou in June. The merger came as part of a $500 million U.S. funding round in AiHuiShou, led by JD.com. Estimates say that the new valuation of AiHuiShou isnmore than $2.5 billion U.S. After the merger, JD.com will become AuHuiShou’s largest strategic shareholder.
JD.com said revenues for Q1 rose 20.9 percent year-over-year to 121.1 billion RMB ($18 billion U.S.), topping the consensus forecast of 120.1 billion RMB. Active customer accounts grew 15 percent from last year to 310 million, helping product revenue grow by 19 percent to $16.2 billion U.S.
The company also announced it has renewed a strategic tie-up with Tencent that gives JD.com high-level access to its WeChat social network and payments platform. It will pay Tencent around $800 million U.S. for the three-year deal. The online giant will also take $250 million U.S. in JD.com’s class A shares.