Chinese stocks have seen the highest highs and the lowest lows in recent weeks. While the country suffered the first economic shocks of the novel coronavirus that originated in Wuhan, China’s aggressive containment strategy has allowed the country to reopen in recent weeks, sending stocks at least temporarily to multi-year highs.To get more news about luckin coffee share price, you can visit shine news official website.

Yet, those bold numbers aren’t always what they seem. Multiple scandals in recent weeks have raised serious questions about the state of Chinese accounting practices, and whether stock exchanges are doing enough to protect investors from fraud and scandal.

The most notable story the past few weeks has been the fall of Luckin Coffee, which announced that it may have overstated sales by hundreds of millions of dollars. The company has since fired its CEO and COO, and has declined in value on Nasdaq by nearly 91% from its mid-January peak. The company in a filing with the SEC said that it delayed releasing its financials due to COVID-19 (as well as, just maybe, the fraud investigation as well).

A quieter scandal has been a similar accounting irregularity at TAL Education Group, a China-based tutoring company traded on NYSE. And then overnight, Muddy Waters, the same research firm that first brought potential fraud at Luckin Coffee to light, released a new report on GSX Techedu indicating potential fraud, accusations which were denied by the education company. In its report, Muddy Waters claims that almost 70% of GSX’s students are “bots” and the company is wildly overstating its financials.

In new filings with the SEC, Nasdaq proposed amending its ruled to allow for tighter listing standards for companies based in a jurisdiction “that has secrecy laws, blocking statutes, national security laws, or other laws or regulations restricting access to information by regulators of U.S. listed companies.” While the rules would apply equally to all countries with information restrictions, context clearly points at China as being the biggest target. The new rules would require greater financial minimums and accountability standards to qualify for listing.