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Bloomberg
Chinese investigators raided the offices of Luckin Coffee Inc. as part of a multi-agency investigation into its finances, according to a person familiar with the matter, as pressure grows on the
formerly high-flying coffee chain at the centre of an accounting scandal.
The raid was carried out jointly by officials from different government agencies as part of an investigation led by the China Securities Regulatory Commission (CSRC) into the beleaguered startup, said the person who was not authorised to speak publicly.
The agencies also involved in the investigation include the State Administration for Market Regulation and the State Taxation Administration, said the person.
The CSRC, China’s securities regulator, started the investigation at the request of its US counterpart the Securities and Exchange Commission, which oversees the Nasdaq exchange where Luckin’s shares are traded, said the person.
Luckin’s company representatives did not immediately respond to calls and texts for comment, but posted on its Weibo account that the company is cooperating with authorities and that store operations are normal. CSRC did not immediately respond to a request for comment about whether they are investigating Luckin.
The State Administration for Market Regulation and the State Taxation Administration did not immediately respond to faxes seeking comment.