Luckin’s fraud allegation hurts market, leads
A group of banks that worked on Luckin Coffee’s IPO is facing questions after an alleged multi-billion renminbi fraud came to light last week. But some of the limelight has already been drawn away by another possible fraud case in China and a controversial short report, creating wider uncertainty around US-listed Chinese stocks. Jonathan Breen and Rebecca Feng report.
Nasdaq-listed Luckin Coffee shocked its shareholders and the wider market last week when it disclosed a Rmb2.2bn ($311.6m) fraud allegedly carried out by the company’s chief operating officer, Jian Liu, and a handful of employees reporting to him.An internal investigation by Luckin revealed a vast fabrication of ...
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