Shares of beleaguered Chinese coffee stock Luckin Coffee (NASDAQ:LK) are slumping in early trading Wednesday — and for a change, this time it’s not necessarily Luckin’s own fault. Instead of revelations of accounting fraud or management resignations, today it’s an international military conflict making investors uncertain about investing in China.
Oh, and a bit of coronavirus news as well.
On the China-India border, a clash between Chinese and Indian army units resulted in the deaths of “at least 20 Indian soldiers,” reports the BBC.
As tragic as that is, you might not think it has much relevance to the stock price of a coffeehouse chain. But it may — Indian Prime Minister Narendra Modi is taking this incident very seriously indeed, and threatening China with “an appropriate response” to the killings.