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 is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.

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