US-listed Chinese firms are on thin ice

After Luckin Coffee's spectacular admission of fraud, more Chinese companies are finding themselves in the crosshairs of regulators and short sellers. Some are trying to get out in front of them.

TAL Education, an online tutoring platform, said last Tuesday that one of their employees may have inflated its sales figures. This has thrown a bombshell into capital markets by setting off the second accounting scandal in a week of US-listed Chinese companies.

The Beijing-based company has seen most of its share gains since the beginning of this year wiped out after the revelation. TAL shares traded down 6.74% to close at $52 per share on Wednesday.

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