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Investigation team sent to Luckin Coffee

By Yang Yang | chinadaily.com.cn | Updated: 2020-04-27 16:48
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A customer holds a beverage from Luckin Coffee in Zhengzhou, Central China's Henan province, April 2, 2020. [Photo/Sipa]

China Securities Regulatory Commission has sent an investigative team to Luckin Coffee, which has recently fallen into scandal due to suspicions of financial fraud, Tencent News reported on Monday.

Many auditors are examining the financial situation of the US-listed company, which issues securities via overseas regulators.

The China Securities Regulatory Commission was granted long-arm jurisdiction to regulate illegal activities of companies issuing securities overseas when the country's security law was amended on March 1 this year, according to an anonymous insider close to CSRC.

Luckin Coffee said the company is taking an active role in cooperating with the investigation. The company and its stores all over China are operating normally as of Monday.

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