Pinduoduo Tumbles Below IPO Price Amid Fake Goods Probe– Caixin Global

What happened: In less than one week after its strong debut on Nasdaq, shares of Pinduoduo slumped more than 16 percent on August 1 to 18.68 apiece, falling below the offering price at $19 amid the rising concerns about counterfeit goods.

 Why it’s important: The heat surround Chinese online bazaar Pinduoduo is taking a negative turn shortly after its blockbuster IPO and strong debut on Nasdaq last week. The company is in a whirlwind for selling fake goods on the platform which cater to the need of low-income users in rural China. Talks about the quick rise of IPO has sparked deeper thoughts on the widening inequality of wealth distribution in China.

Emma Lee

Emma Lee (Li Xin) was TechNode's e-commerce and new retail reporter until June 2022, when she moved to Sixth Tone to cover technology and consumption. Get in touch with her via lixin@sixthtone.com or Twitter.

Leave a comment

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.