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Pinduoduo share tumbles amid counterfeit probe
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.