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Chinese regulators raid Luckin offices and seize documents

Watchdogs cooperate with US over fabricated-sales scandal

A Luckin Coffee store in Shanghai: The accounting scandal affects not just the Starbucks rival, but also other Chinese companies listed abroad and those seeking to go public, as it dampens the allure of China's high-growth startup bonanza. (Photo by Naoki Matsuda)

NEW YORK -- Chinese regulators have begun an investigation into Luckin Coffee, whose scandal involving fabricated sales figures is seen as risking the trustworthiness of other U.S.-listed companies from China.

Luckin confirmed the probe Monday via Weibo, China's Twitter equivalent, citing "market regulation authorities" -- an apparent reference to the State Administration for Market Regulation, which reportedly is involved at the request of the U.S. Securities and Exchange Commission. The SEC declined to comment.

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