China regulator condemns Luckin Coffee financial misconduct, says will investigate

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China regulator condemns Luckin Coffee financial misconduct, says will investigate
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China's securities regulator said on Friday it strongly condemns financial misconduct by Luckin Coffee.

FILE PHOTO: A deliveryman walks past a closed Luckin Coffee store at Sanlitun, as the country is hit by an outbreak of the new coronavirus, in Beijing, China February 7, 2020. REUTERS/Jason Lee

BEIJING - China’s securities regulator said on Friday it strongly condemns financial misconduct by Luckin Coffee. The China Securities Regulatory Commission also said in a statement it will investigate the issue according to the law and resolutely crack down on securities fraud activities. Shares of Luckin Coffee Inc sank as much as 81% on Thursday after the Chinese coffee chain said an internal investigation had shown that its chief operating officer and other employees fabricated sales transactions.

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