FILE PHOTO: Charles Zhengyao Lu, non-executive chairman of Luckin Coffee, speaks during the company's IPO at the Nasdaq Market site in New YorkSHANGHAI (Reuters) – China’s Ucar Inc, in which Luckin Coffee Chairman Charles Zhengyao Lu is the biggest shareholder, suspended trading of its shares on Tuesday after regulators questioned the car service provider about how the alleged fraud at Luckin would impact it. Ucar, in which Lu is chairman and CEO, said in a statement late on Monday that the company applied to halt trading in its shares to avoid abnormal price fluctuations and protect investor interest amid media reports on the company. Ucar said its shares will halt trading on China’s New Third Board equity market for as long as a month and will resume trading no later than May 6. NEEQ asked the company to explain whether the alleged fraud at Luckin could result in Lu being sued or have his stakes frozen. Ucar was also asked to spell out measures it plans to take to mitigate the risks from the Luckin probe.

Source: MetroXpress April 07, 2020 04:41 UTC