The astounding fraud admission from beverage chain Luckin has put more US-listed Chinese companies in regulator and short-seller crosshairs.
Shares slid overnight after losses hit nearly $100 million in the quarter.
Luckin Coffee and Tencent have been partners since Sept. 2018.
Luckin is under financial pressures as the startup coffee chain is showing signs of overheating.
Luckin Coffee, the coffee shop startup using market acquisition tactics borrowed from China’s internet companies, has written an open letter to Starbucks accusing it of monopolistic practices in the country and proposing a possible lawsuit, according to Tencent News (in Chinese). Luckin has taken issue with Starbucks’ exclusivity rights with property owners and putting pressure […]