China regulator condemns Luckin Coffee financial misconduct, says will investigate

BEIJING (Reuters) – China’s securities regulator said on Friday it strongly condemns financial misconduct by Luckin Coffee.

The China Securities Regulatory Commission (CSRC) also said in a statement it will investigate the issue according to the law and resolutely crack down on securities fraud activities.

Shares of Luckin Coffee Inc sank as much as 81% on Thursday after the Chinese coffee chain said an internal investigation had shown that its chief operating officer and other employees fabricated sales transactions.

(Reporting by Beijing Newsroom; Editing by Tom Hogue)