Luckin Coffee has agreed to pay a $180 million penalty to settle accounting fraud charges brought by the US market regulator.
Luckin confirms sales fraud, two months after doubts about the disclosure accuracy by the Chinese Starbucks rival.
Luckin is being investigated in the US for defrauding investors amid pressing concerns to recoup a dropoff in sales as a result of Covid-19.
Alarmed by the Luckin Coffee, scandal, Nasdaq moves to restrict IPOs by Chinese companies, effectively helping Beijing keep them at home.
Iqiyi, often called the Netflix of China, is another short seller target following beverage chain Luckin Coffee’s spectacular downfall.
Iqiyi said it is under investigation by the SEC over a short report released in April that accused the company of inflating 2019 revenue by up to 40%.
The lending and wealth management unicorn Lufax is looking to tap into US capital markets, as regulators are increasing scrutiny of Chinese tech listings.
Ctrip is the fourth Chinese tech company that mulls delisting from the US financial markets in around one month as the tension between the two countries intensify.
Sina is the second Chinese tech company in a month mulling a delisting from the US market, a sign that Chinese tech firms are shying away from US markets.