Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Intel Empire Fights Back with Rocket and Alder Lake! - 24th Jan 21
4 Reasons for Coronavirus 2021 Hope - 24th Jan 21
Apple M1 Chip Another Nail in Intel's Coffin - Top AI Tech Stocks 2021 - 24th Jan 21
Stock Market: Why You Should Prepare for a Jump in Volatility - 24th Jan 21
What’s next for Bitcoin Price – $56k or $16k? - 24th Jan 21
How Does Credit Repair Work? - 24th Jan 21
Silver Price 2021 Roadmap - 22nd Jan 21
Why Biden Wants to Win the Fight for $15 Federal Minimum Wage - 22nd Jan 21
Here’s Why Gold Recently Moved Up - 22nd Jan 21
US Dollar Decline creates New Sector Opportunities to Trade - 22nd Jan 21
Sandisk Extreme Micro SDXC Memory Card Read Write Speed Test Actual vs Sales Pitch - 22nd Jan 21
NHS Recommends Oximeter Oxygen Sensor Monitors for Everyone 10 Months Late! - 22nd Jan 21
DoorDash Has All the Makings of the “Next Amazon” - 22nd Jan 21
How to Survive a Silver-Gold Sucker Punch - 22nd Jan 21
2021: The Year of the Gripping Hand - 22nd Jan 21
Technology Minerals appoints ex-BP Petrochemicals CEO as Advisor - 22nd Jan 21
Gold Price Drops Amid Stimulus and Poor Data - 21st Jan 21
Protecting the Vulnerable 2021 - 21st Jan 21
How To Play The Next Stage Of The Marijuana Boom - 21st Jan 21
UK Schools Lockdown 2021 Covid Education Crisis - Home Learning Routine - 21st Jan 21
General Artificial Intelligence Was BORN in 2020! GPT-3, Deep Mind - 20th Jan 21
Bitcoin Price Crash: FCA Warning Was a Slap in the Face. But Not the Cause - 20th Jan 21
US Coronavirus Pandemic 2021 - We’re Going to Need More Than a Vaccine - 20th Jan 21
The Biggest Biotech Story Of 2021? - 20th Jan 21
Biden Bailout, Democrat Takeover to Drive Americans into Gold - 20th Jan 21
Pandemic 2020 Is Gone! Will 2021 Be Better for Gold? - 20th Jan 21
Trump and Coronavirus Pandemic Final US Catastrophe 2021 - 19th Jan 21
How To Find Market Momentum Trades for Explosive Gains - 19th Jan 21
Cryptos: 5 Simple Strategies to Catch the Next Opportunity - 19th Jan 21
Who Will NEXT Be Removed from the Internet? - 19th Jan 21
This Small Company Could Revolutionize The Trillion-Dollar Drug Sector - 19th Jan 21
Gold/SPX Ratio and the Gold Stock Case - 18th Jan 21
More Stock Market Speculative Signs, Energy Rebound, Commodities Breakout - 18th Jan 21
Higher Yields Hit Gold Price, But for How Long? - 18th Jan 21
Some Basic Facts About Forex Trading - 18th Jan 21
Custom Build PC 2021 - Ryzen 5950x, RTX 3080, 64gb DDR4 Specs - Scan Computers 3SX Order Day 11 - 17th Jan 21
UK Car MOT Covid-19 Lockdown Extension 2021 - 17th Jan 21
Why Nvidia Is My “Slam Dunk” Stock Investment for the Decade - 16th Jan 21
Three Financial Markets Price Drivers in a Globalized World - 16th Jan 21
Sheffield Turns Coronavirus Tide, Covid-19 Infections Half Rest of England, implies Fast Pandemic Recovery - 16th Jan 21
Covid and Democrat Blue Wave Beats Gold - 15th Jan 21
On Regime Change, Reputations, the Markets, and Gold and Silver - 15th Jan 21
US Coronavirus Pandemic Final Catastrophe 2021 - 15th Jan 21
The World’s Next Great Onshore Oil Discovery Could Be Here - 15th Jan 21
UK Coronavirus Final Pandemic Catastrophe 2021 - 14th Jan 21
Here's Why Blind Contrarianism Investing Failed in 2020 - 14th Jan 21
US Yield Curve Relentlessly Steepens, Whilst Gold Price Builds a Handle - 14th Jan 21
NEW UK MOT Extensions or has my Car Plate Been Cloned? - 14th Jan 21
How to Save Money While Decorating Your First House - 14th Jan 21
Car Number Plate Cloned Detective Work - PY16 JXV - 14th Jan 21
Big Oil Missed This, Now It Could Be Worth Billions - 14th Jan 21
Are you a Forex trader who needs a bank account? We have the solution! - 14th Jan 21
Finetero Review – Accurate and Efficient Stock Trading Services? - 14th Jan 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Liu Qiangdong Reaps the Harvest of JD Health's White-Hot IPO

Companies / Healthcare Sector Dec 19, 2020 - 06:09 PM GMT

By: Sumeet_Manhas


Share prices for JD Health International increased by 56 percent over its original offering price at closing on December 8, 2020, the first day of the company’s Initial Public Offering (IPO). Its share price for that day peaked at 70 percent over the IPO price of $70.58 in Hong Kong dollars (HK), equal to about $9.11 in U.S. dollars. This IPO price was already at the top end of the stock’s listing range. The stock closed on its opening day at HK$110, or US$14.19, and gained another two percent the following day.

This result marks a stellar beginning for the company many analysts consider to be China’s leading healthcare provider for online services. JD Health is the healthcare unit of, an ecommerce firm in China founded by Liu Qiangdong. JD Health is’s second publicly traded unit, although the firm is also planning to offer several of its other subsidiaries for public trade.

Multiple Listings

The performance of JD Health’s stock was good news for CEO Liu Qiangdong. China has recently prohibited major IPOs like Jack Ma’s Ant Group, which would have been the largest IPO in history. However, reports now indicate this firm may not attempt another IPO before 2022. JD Health’s IPO also comes at a time when U.S. stock exchanges may have to delist many Chinese companies if federal regulators aren’t willing to compromise on current auditing oversight requirements.

However, this issue hasn’t slowed Liu Qiangdong’s plans for additional listings. The company already has a primary listing on NASDAQ, but it made a secondary one on the Stock Exchange of Hong Kong (SEHK) in June 2020. Its stock price on the SEHK has increased by almost 40 percent since then, and the company’s NASDAQ listing has performed even better since then. As a result, the listings for and JD Health have been the two largest IPOs for the SEHK in 2020. also raised $320 million on NASDAQ in June 2020 from the IPO of Dada Nexus (DADA),’s grocery delivery arm. Dada’s stock price has since doubled, largely due to investments from itself and Wal-Mart. The retail giant has been particularly keen to gain ownership of firms in China’s emerging markets. Regulatory filings show that Wal-Mart currently owns about US$2 billion in Dada shares.

JD Digits and JD Logistics are two other subsidiaries of that may get listings on stock exchanges in the near future. JD Digits is’s financial technology, or fintech, unit, which filed for an IPO on Shanghai’s STAR market in September 2020. This exchange is just over a year old, but it already has 200 listed companies. Investment bank China Renaissance reports that foreign investment in STAR has leaped from 270 million yuan (US$41 million) last year to almost 6 billion yuan (US$918 million) today.

JD Logistics has been considering an IPO with the SEHK since late 2019, with fundraising goals reportedly in the US$8 billion to US$10 billion range at that time. Reuters reports that this estimate is now much lower, with a top end of about US$3 billion. Industry insiders expect investment banks provide the great majority of this funding, probably by early 2021. However, hasn’t confirmed these reports.

Future Growth

JD Health is currently in a good position for continued growth, but it will face some challenges. Gil Luria, research director at D.A. Davidson says, “The market is currently putting a lot of emphasis on growth, especially with a long runway. As long as that is the case, JD Health may enjoy continued momentum.” Luria bases this assessment on the current shift toward telemedicine and online pharmaceutical sales in China.

He adds that technological advances are driving the trend towards telemedicine, especially video technology. Social factors such as a greater emphasis on preventative care and the limited availability of healthcare professionals in some regions of China are also key drivers for JD Health’s growth. However, capitalizing on these trends to provide flexible telemedicine solutions may prove challenging. For one thing, this market is becoming highly competitive in China, and there are few barriers to entry for new competitors. For another, increasing government regulations are likely to limit growth.

On the other hand, telemedicine is still in its infancy, so the market penetration of individual players is quite small, according to Lijun Xin, CEO of JD Health. Despite this, JD Health is still a leading telemedicine provider with the largest online medical consultation platform in China. Furthermore, the COVID-19 pandemic has made that country’s government far more receptive to telemedicine. JD Health has consequently received support and recognition in addition to many opportunities to demonstrate its capabilities in this area.

History is an ecommerce company based in Beijing. Liu Qiangdong founded the firm in 1998, but didn’t take its retail platform online until 2004. The company has grown rapidly, obtaining 417 million customers by 2020. also obtained US$830 million from the private equity firm Hillhouse Capital in August 2020, which it used to invest in JD Health.

By Sumeet Manhas

© 2020 Copyright Sumeet Manhas - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules