Luckin Continues to Lost Amid Scandal; Market Begins to Take a Breath

The fear index has been cut nearly in half from its high, reflecting a calm over the still struggling market.
Belinda ZhouApr 04,2020,06:55

For the U.S. citizens, March is a month marked with loss as over 700,000 of them lost their jobs in the month in the coronavirus related layoffs, as the Labor Department said Friday.

The country reported the highest single-day death toll on the same day, amounting to 266,671 reported infections as of Friday afternoon. The stimulus package by Trump administration didn’t cheer the market with major benchmarks down.


Chinese real state sector may be regarded as a safe haven.

Shares in Xinyuan Real Estate Co., Ltd. (NYSE: XIN) soared 8% to $2.26 per share on Friday. The company said its total revenue increased 13% to $2.5 billion from $2.2 billion in 2018. Its net income hit $1.20 per American depositary share in 2019, up from $1.14 per share in 2018. Xinyuan also declared a cash dividend for the fourth quarter of 10 cents per ADS on Friday.

Shares in China HGS Real Estate Inc. (Nasdaq: HGSH) jumped nearly 16% to 40 cents per share on Friday. The Hanzhong-based company engages in the construction and sale of residential apartments, parking lots, and commercial properties in China. 

The stock price of DouYu International Holdings Ltd. (Nasdaq: DOYU) jumped 9% to $7.16 per share. The platform, headquartered in Wuhan, focuses on interactive games and entertainment live streaming in China.

Guangzhou-based JOYY Inc. (Nasdaq: YY), another live streaming player, gained4% to $56.76 per share on Friday. The company covers online games, console games, mobile games, entertainment, sports. 

UP Fintech Holding Ltd. (Nasdaq: TIGR) announced Friday its official entry into the wealth management business. Shares in the company stay almost unchanged on Friday, closing at $2.58 per share. The company has launched an online platform Fund Mall to provide a one-stop-shop for investing in global mutual funds. 

Hong Kong-based digitized brokerage platform Futu Holdings Ltd. (Nasdaq: FUTU) gained 4% on Friday to $10.54 per share.

The stock in Maryland-based Seneca Biopharma Inc. (Nasdaq: SNCA) skyrocketed 15% Friday on news of the completion of its stem cell manufacturing facility in Suzhou, China. The drug will be used in clinical trials in China.


Shares in Luckin Coffee Inc. (Nasdaq: LK) continued to drop 16% to $5.38 per share on Friday, as accounting firm Ernst & Young said Friday it uncovered the problems at the company. 

Luckin lost over 70% on Thursday when it said it had launched an internal investigation regarding 2.2 billion yuan ($314 million) in allegedly fabricated transactions.

China's game live streaming company, Huya Inc. (NYSE: HUYA), is now majority-owned by tech giant Tencent Holdings Ltd. (OTC: TCEHY; HKEX: 0700), according to a statement today. Shares in Huya dropped 6% to $15.97 per share on Friday.

Huya said Tencent has purchased 16.5 million of its Class B ordinary shares from JOYY Inc. (Nasdaq: YY) for approximately $262.6 million. The deal gives Tencent around 50% of the voting power, or approximately 51% based on the issued and outstanding shares of Huya, according to the statement. Huya competes with DouYu in China's live-streaming market. 

Shares in GDS Holdings Ltd. (Nasdaq: GDS) lost 10%, closing at $51.20 per share. The Shanghai-based company operates data centers in China. The company provides colocation, managed hosting, and managed cloud services, as well as consulting services.

Chinese education company GSX Techedu Inc. (NYSE: GSX) lost 16% on Friday. It provides online K-12 large-class after-school tutoring services in China.

Another education company Puxin Ltd. (NYSE: NEW) lost 7% to $3.75 per share on Friday. The company offers K-12 and study-abroad tutoring services.

Oil company PetroChina Company Ltd. (NYSE: PTR), producing petroleum-related products, lost 7% on Friday.


Crude oil prices continued to rise 15% to $29 per barrel as of Friday afternoon.

The Dow Jones Industrial Average lost 1.69%, or 361 points, to 21053, while the S&P 500 declined 1.51% to 2489. Nasdaq down 1.53% to 7373. 

The Shanghai Composite dropped 0.6%, losing 17 points, to 2,764. The Shenzhen Composite declined 69 points to 10,110 by 0.68%. The Hang Seng Index in Hong Kong lost 0.19% by 44 points to 23,236, down 0.19%.

The fear index or VIX dropped 8% to 46.80. The index hit its peak of 83 in mid-March.