Under the revised Securities Law of China, regulators may have some ability to investigate Luckin, which disclosed wide-scale sales revenue fraud.
Naixue’s Tea, one of China’s largest tea beverage chains, is reportedly looking to raise $400 million in a US IPO as early as this year.
Washington is threatening delisting for Chinese companies if they don’t comply with tighter audit rules. But there’s still room for a deal.
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.
Tech stocks are down following an epidemic. Luckin Coffee’s stock has suffered the most, as mask manufacturers’ share prices rise.