Scrutiny Mounts On China’s Luckin Coffee As Market Regulator Inspects

From: reuters.com

China’s top market regulator has launched an inspection into Luckin Coffee (LK.O), joining the country’s securities watchdog in doing so as the coffee chain comes under scrutiny for fabricating millions of dollars worth of sales deals.

Dozens of officers from the State Administration for Market Regulation (SAMR) raided Luckin’s main office in Beijing on Sunday, staying there from morning to evening that day, a source with direct knowledge of the situation told Reuters.

Luckin Coffee confirmed that it was being inspected by the SAMR in a post on its official Weibo account on Monday, saying that it was “actively cooperating” with the regulator, which was trying to understand the company’s operating situation. It did not respond to requests from Reuters for further comment.

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