How did Luckin Coffee of China fool so many into thinking it was?
Thanks for request. How did Luckin fool so many? They opened thousands of stores in China in a matter of a few years (over 3,000) Did Luckin produce fake financial accounting ? Of course, that is how a certain percentage of businesses in the world operate and hope not to get caught. Other corporate accounting scandals : Waste Management company $1.7 billion Enron $74 billion WorldCom $11 billion Tyco $3 billion Freddie Mac $5 billion AIG $4 billion Lehman Brothers $50 billion Madoff Investment Securities $60 billion Satyam $1.5 billion Are most Chinese companies listed on stock exchanges producing fake financial accounting ? There is no evidence of this How can you trust when investing in the stock market? If you are a small investor, you either do your own research or you trust the advice of your broker. If you are investing big money, you do a lot of research beyond just looking at the financial statements. Why to investors invest in Chinese companies? To earn more money then investing it in a bank, that earns you almost nothing. Investing in any company stock is a gamble and the stock market functions on emotion. They place their faith in the future, not in the present and hope to cash in before the stock price declines. This is why people and corporations invest in Asia : There are always a few bad apples everywhere.