20.05.2020 Nasdaq Daily Analysis

20.05.2020 Nasdaq Daily Analysis

On Tuesday, Luckin Coffee Inc (O:LK) said that Nasdaq Inc (O:NDAQ) has given the company a notice that it plans to delist it from the U.S. Stock Exchange a month after the Chinese coffee chain disclosed that some of its employees fabricated sales accounts. In early April, Luckin said that as much as 2.2 billion yuan ($310 million) in sales was fabricated by its chief operating officer Jian Liu and other staff. Nasdaq renewed its focus on the auditing standards of companies on its bourse. This week it tightened its listings rules with an eye to curbing initial public offerings (IPOs) of Chinese companies that are closely held by insiders and are not transparent about their accounting, Reuters reported on Monday. Nasdaq Inc (NDAQ) is going down by -$2.31, or by -2.01% at $112.63. The falsified numbers equate to about 40% of Luckin's annual sales projected by analysts, according to Refinitiv IBES data.