Shares of accounting scandal-hit Luckin Coffee will remain frozen for trading until the Chinese company satisfies Nasdaq’s request to provide “additional information,” the bourse said Thursday.
Nasdaq, which suspended Luckin’s shares from trading Tuesday with a “news pending” alert, did not specify what additional information it required.
Last week, the Chinese coffee chain confessed to fabricating sales worth 2.2 billion yuan ($310 million) for much of 2019, two months after it denied a Muddy Waters-backed report accusing it of cooking its books.
The scandal sent Luckin’s shares tumbling by nearly 80% last week in spite of its move to launch an internal investigation into the scandal.
There is concern that Luckin’s misconduct has fueled some investors’ distrust toward U.S.-listed Chinese companies. On Tuesday, short seller Wolfpack Research published a report claiming the Nasdaq-traded Chinese video streaming service iQiyi inflated its 2019 revenue and is currently overstating its users numbers. iQiyi disputed the allegations.
Contact reporter Ding Yi (firstname.lastname@example.org)
Related: Will iQiyi be the Next Luckin?