Last week, the state market regulator fined Luckin and the companies that assisted its sales fraud. New Chinese brands are attracting investor attention.
Luckin may be kicked off Nasdaq over fraud admission as board seeks to rein in shady listings. Delisting would put Luckin in the company of penny stocks.
The astounding fraud admission from beverage chain Luckin has put more US-listed Chinese companies in regulator and short-seller crosshairs.
While the CEO and COO take the fall, Luckin non-executive chairman and driving force behind CAR Inc., Lu Zhengyao, remains unscathed.
Luckin Coffee and Tencent have been partners since Sept. 2018.
Some analysts think the SEC’s move is more about politics than financials. The delist might grow as more companies report earnings.
The Q1 performance of Nio was a big relief for investors and eased concerns over fallout from the recent Luckin scandal.