Chinese regulators said they would penalise Luckin Coffee after confirming accounting fraud that has already forced the company to delist from the U.S. Nasdaq exchange.
FILE PHOTO: A woman leaves a store of the Chinese coffee house chain Luckin Coffee in Beijing, China, July 8, 2020. Picture taken July 8, 2020. REUTERS/Thomas Peter
The ministry said that it would now impose administrative penalties on Luckin, without giving further details. The delisting of its U.S. shares added to concerns about Chinese company governance after the U.S. Securities and Exchange Commission warned in April of the dangers of investing in emerging market stocks, singling out China in particular.
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