Four months ago, a report was disclosed by Wolfpack Research that accused iQiyi of committing fraud in its IPO that dates back to 1/1/2018 and continuing to do so till today. The IQIYI company has overstated its revenue and user numbers up to 44% and 60% respectively.
The US Securities and Exchange Commission (SEC) had opened an investigation into its fraud allegation in this week! The company stock price has immediately tanked 11% after SEC’s announcement!
The company’s majority stock holder is Chinese Internet Searching Engine company Baidu that holds 60% stocks of IQIYI!
It is believed that IQiyi and Luckin Coffee will not be the last scandal of PRC companies that are listed in American Stock Markets.