Luckin faces Nasdaq suspension over false sales figures
Disgraced Chinese firm Luckin Coffee has resumed trading on Nasdaq despite being sent a delisting notice.
The resumption of trade is a grace period pending the result of an appeal filed by the firm against the delisting. A hearing is likely to be held after a 45-day period.
Trading in the shares was frozen following reports of falsified sales data on the part of the firm, which saw its senior management fired for the misdemeanours. The announcement resulted in an immediate drop of 75 per cent of the firm’s share value at the time.
The Nasdaq exchange is currently considering tightening the rules for international firms regarding restrictions on US regulators’ access to information, among other revisions.
Luckin Coffee was previously touted as a serious threat to US chain Starbucks, which currently dominates China’s fast-growing coffee cafe market.