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Luckin Stock Faces Wipeout in Rush to Sell Before Delisting

  • Coffee chain embroiled in accounting scandal resumes trading
  • Company has become an emblem of China Inc. governance concerns
A Luckin Coffee outlet in Shanghai.

A Luckin Coffee outlet in Shanghai.

Photographer: Qilai Shen/Bloomberg
Updated on

Luckin Coffee Inc.’s battered stock saw a renewed wave of selling on Wednesday, after Nasdaq Inc. said it planned to delist the onetime market darling that shocked investors with revelations of accounting fraud last month.

The Chinese coffee chain’s shares, which had been suspended since tumbling more than 80% in early April, slumped to a record low Wednesday as trading resumed in New York. Luckin announced Nasdaq’s intention to delist the company in a statement on Tuesday, saying shares will remain on the exchange pending the outcome of an appeal hearing.