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China to Probe U.S.-Listed Shopping App Over Fake Goods

  • Government watchdog orders the probe as media reports spread
  • The investigation comes after a rousing New York market debut
Updated on

Chinese regulators announced an investigation into widespread reports of counterfeits sold through Pinduoduo Inc. just a week after the e-commerce operator’s high-profile U.S. initial public offering.

On Wednesday, the State Administration for Market Regulation ordered Shanghai authorities to look into the reports and vowed “serious” punishment if it uncovers violations. Known as PDD, shares of the online bazaar soared 41 percent on its first day of trading in New York after raising $1.63 billion in the fourth-largest U.S. IPO this year. The shares plummeted as much as 15 percent Wednesday.