Luckin Coffee scandal highlights murky standards of China Inc.

Alleged fraud appears to have been subtler than those elsewhere

20200414 Luckin Coffee Hangzhou cup.jpg

Luckin was primarily valued on revenue growth and its ability to show a path to profitability. © FeatureChina/AP

Nigel Stevenson is an analyst at GMT Research, an accounting research company based in Hong Kong.

Luckin Coffee's revelation that 40% of its sales since the second quarter of 2019 had been fabricated makes it the highest profile Chinese corporate fraud to date and wiped around $5.5 billion off its market value.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.