Shares of Chinese billionaire Chen Tao’s company fell after his kissing video went viral. Due to this scandal, ‘Victory Giant Technology’ suffered a loss of 20 billion yuan. The company has called it a personal matter of the chairman.
World News: Shares of a Chinese billionaire’s company fell badly after a video of him kissing a woman inside an elevator went viral. The company suffered a loss of approximately 20 billion yuan (about 2.9 billion US dollars) due to this one video. This billionaire is 54 year old Chen Tao, who is already married. Chen is the chairman and founder of ‘Victory Giant Technology’. This company is an important supplier of AI chip manufacturing giant Nvidia and is one of the largest printed circuit board (PCB) manufacturing companies in China.
This whole uproar started on June 6, when a social media user named ‘Shenzhen Janice’ shared some posts. She claimed to be having an affair with Chen Tao. As proof, he also posted screenshots of the private chat between the two and a video of them hugging and kissing inside the lift. This video spread like wildfire on China’s social media.
This controversy had a direct impact on the company’s shares. As soon as the market opened on June 8, the company’s shares fell by more than 9%. Within a few hours, 20 billion yuan (about $ 2.9 billion or about Rs 24,000 crore) was wiped off the company’s market value. However, the shares made some recovery the very next day, which reduced the panic spread in the market.
On this matter, Victory Giant Technology has said that these news going on online will not have any impact on the company’s business or management. The company’s production and orders are all running normally. When questioned about the chairman’s resignation, company officials replied that it was a personal matter and if any decision was taken, it would be announced officially.