Luckin Coffee being investigated by China's top regulator, WSJ reports - InvestingChannel

Luckin Coffee being investigated by China’s top regulator, WSJ reports

China’s top business and commerce regulator is investigating Luckin Coffee, Jing Yang of Wall Street Journal reports, citing a person familiar with the matter. More than a dozen officers from the country’s State Administration for Market Regulation entered Luckin’s headquarters in Xiamen on Sunday, the person said, adding that they demanded access to the company’s accounts and other records, according to Yang. The move comes after Luckin admitted earlier this month that much of its 2019 sales were fabricated. Luckin said in a statement on its official Weibo account that it is “actively cooperating” with the market regulator and that its stores across the country are operating normally. Shares of Luckin Coffee have been halted for trading since April 7.