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US says uninsured coronavirus patients will be covered

US says uninsured coronavirus patients will be covered The tens of millions of Americans who lack health insurance will be covered by the government if they fall sick with the COVID-19 illness, the US health secretary said Friday. Alex Azar told reporters that the CARES act, a coronavirus stimulus package passed by Congress, included $100 billion for health care providers who "will be forbidden from balance billing the uninsured for the cost of their care." Instead, hospitals and health care professionals will be reimbursed at the rates for Medicare, a state insurance program for the elderly.

Coronavirus might spread much farther than 6 feet in the air. CDC says wear a mask in public.

Coronavirus might spread much farther than 6 feet in the air. CDC says wear a mask in public. New research shows that droplets in our coughs could travel as much as 26 feet.

Coronavirus live updates: Cloth masks in public now recommended; US death toll tops 7,000; 701K jobs lost in March

Coronavirus live updates: Cloth masks in public now recommended; US death toll tops 7,000; 701K jobs lost in March New research has prompted authorities to change their position Friday on the widespread use of non-medical masks in public.

US employment plunges in March amid worsening coronavirus damage

US employment plunges in March amid worsening coronavirus damage As the US economy craters, crippled by coronavirus shutdowns, businesses jettisoned jobs at an alarming rate last month, government data showed Friday, and the situation will get dramatically worse. US employment plunged by 701,000 in March and the jobless rate surged to 4.4 percent, the Labor Department reported.

Global Loudspeakers Market Review 2015-2019 and Forecast 2020-2030 - Market to Reach $15.11 Billion by 2023

Global Loudspeakers Market Review 2015-2019 and Forecast 2020-2030 - Market to Reach $15.11 Billion by 2023 The "Loudspeakers Global Market Report 2020" report has been added to ResearchAndMarkets.com's offering.

Homemade mask sellers have get creative as the CDC sets new guidelines

Homemade mask sellers have get creative as the CDC sets new guidelines Mask makers are seeing an increased demand in home made face masks as the CDC advises all Americans to wear non-medical masks.

Oil price barrels ahead as OPEC flags meeting

Oil price barrels ahead as OPEC flags meeting The price of crude oil surged again Friday after OPEC said it would talk to non-members, notably Russia, giving investors hope for an end to a price war which has created market chaos along with crushed demand because of the coronavirus. OPEC oil producers and their allies will meet Monday via video conference, a source close to the cartel said.

Walmart to limit how many shoppers can enter stores as part of coronavirus response

Walmart to limit how many shoppers can enter stores as part of coronavirus response Walmart to limit the number of shoppers as part of its response to the coronavirus pandemic starting Saturday, April 4, to promote social distancing.

5-Star Analyst Reiterates Bullish Stance on Lyft Stock; Here's Why

5-Star Analyst Reiterates Bullish Stance on Lyft Stock; Here's Why Anyone need a Lyft (LYFT)? It's funny how such an ordinary question appears so out of place, but it is only a reflection of these surreal times. The ride sharing platform, as would be expected in these lockdown days, has endured a torrid time in 2020. Year-to-date, Lyft stock is down nearly 50%.On Tuesday, Lyft disclosed it has reached an agreement with Enstar to effectively eliminate almost all of the company's principal auto insurance liabilities concerning periods prior to October 2018. At investment firm Stifel Nicolaus, the news was received as a welcome development.Scott Devitt, a 5-star Stifel analyst, said, "The agreement with Enstar effectively transfers Lyft's primary auto insurance liabilities from the period of October 2015 to September 2018 to Enstar for a consideration of $465mm, with approximately 80% of the consideration paid for from Lyft's restricted cash, cash equivalents, and investments that were previously held on Lyft's balance sheet as collateral against these legacy claims. We view the transaction as a positive development that should effectively remove future volatility in the P&L related to changes to estimates for auto insurance liabilities in the pre-October 2018 period."Devitt doesn't believe the transaction should impact Lyft's liquidity position. The company exited 2019 with almost $2.9 billion in unrestricted cash, cash equivalents, and short-term investments, and despite the current macro environment, Devitt expects Lyft to see out 2020 with "a significant cash cushion even with significant bookings deterioration."Devitt keeps his Buy rating on Lyft, along with a $42 price target. The implication for investors? Possible upside of 91%. (To watch Devitt's track record, click here)Overall, the Street remains firmly on Lyft's side. 21 Buys and 5 Holds add up to a Strong buy consensus rating. The average price target is $56.41 and could provide investors with upside of a considerable 156%, should it be met in the year ahead. (See Lyft stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a newly launched tool that unites all of TipRanks' equity insights. More recent articles from Smarter Analyst: * Hang in There, Upwork Investors, Better Days Ahead, Says Analyst * Western Digital (WDC) Is Our 'Best COVID-19 Recovery Idea,' Says 5-Star Analyst * Overreaction Presents a Buying Opportunity in Hexo Stock * 3 Cannabis Stocks Set to Thrive Through the Global Shutdown

Here's How P/E Ratios Can Help Us Understand NewOcean Energy Holdings Limited (HKG:342)

Here's How P/E Ratios Can Help Us Understand NewOcean Energy Holdings Limited (HKG:342) This article is written for those who want to get better at using price to earnings ratios (P/E ratios). We'll apply a...

China Isotope & Radiation Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

China Isotope & Radiation Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now Last week, you might have seen that China Isotope & Radiation Corporation (HKG:1763) released its annual result to the...

OSHA cites companies in deadly New Orleans hotel collapse

OSHA cites companies in deadly New Orleans hotel collapse A federal agency has issued citations against a dozen companies in connection with last fall's deadly partial collapse of a hotel under construction in New Orleans. The Occupational Safety and Health Administration also cited a steel contractor for "failing to maintain structural stability of the building," according to a news release posted on the OSHA website Friday. Heaslip Engineering LLC was cited for a multiple "serious" violations and one labeled "willful."

How Does Jardine Cycle & Carriage's (SGX:C07) P/E Compare To Its Industry, After The Share Price Drop?

How Does Jardine Cycle & Carriage's (SGX:C07) P/E Compare To Its Industry, After The Share Price Drop? Unfortunately for some shareholders, the Jardine Cycle & Carriage (SGX:C07) share price has dived 31% in the last...

COVID-19 Antibody Test Released by Ortho Clinical Diagnostics

COVID-19 Antibody Test Released by Ortho Clinical Diagnostics Aligned with its mission to improve and save lives with diagnostics, Ortho Clinical Diagnostics today announced it is launching to market its SARS-CoV-2 (COVID-19/coronavirus) antibody test-the VITROSģ Immunodiagnostic Products Anti-SARS-CoV-2 Total Reagent Pack. Testing kits are expected to be available in a few weeks.

BA cabin crew contract virus on long-haul flights

BA cabin crew contract virus on long-haul flights Pilots and cabin crew say the airline was slow to take action to protect them from the coronavirus.

Read the pitch deck that buzzy startup Devoted Health used to reach a $1.8 billion valuation before it signed up a single customer

Read the pitch deck that buzzy startup Devoted Health used to reach a $1.8 billion valuation before it signed up a single customer BI Prime offers an inside look at the pitch deck that helped Devoted Health each a $1.8 billion valuation before signing up a single customer.

As tech layoffs surge, some support emerges for those without a job

As tech layoffs surge, some support emerges for those without a job The massive surge of COVID-19-related layoffs has put tech in a unique position. The spreadsheets popped up as a bet on the network effect, with the ultimate goal of hoping the sheets land in the hands of a recruiter looking to hire one of hundreds laid off.

Coronavirus: Indonesia grapples with fear of a hidden virus surge

Coronavirus: Indonesia grapples with fear of a hidden virus surge Vast and far-flung, Indonesia faces a unique struggle against the virus - many fear it is on the losing side.

Mortgage Crisis Prompts U.S. to Weigh Harder Line With Borrowers

Mortgage Crisis Prompts U.S. to Weigh Harder Line With Borrowers (Bloomberg) -- With a wave of U.S. mortgage borrowers expected to seek reprieves from monthly payments, regulators are taking steps to make it easier for firms that service the loans and bracing for the reality that they may have to take a harder line in specifying who qualifies for relief.The likely surge in coronavirus-fueled forbearance requests has been exacerbated by the $2.2 trillion stimulus measure that Congress passed last week. The legislation stipulated that homeowners hurt by the pandemic's devastating impact on the economy could delay payments for months.But lawmakers put few burdens on borrowers, forbidding mortgage servicers from demanding documented proof of hardship. Instead, consumers would just have to attest that they're struggling.Widespread Abuses?In anticipation that there could be confusion, fights and even widespread abuses as borrowers withhold payments, agencies are seeking to clarify that the break is only for those who really need it. Officials at the Federal Housing Finance Agency and Department of Housing and Urban Development are among those discussing whether to issue guidance on who's eligible, people familiar with the matter said.On Friday, federal banking regulators said they will be flexible in supervising mortgage servicers and in pursuing enforcement actions provided that the companies make good faith efforts to assist borrowers seeking to miss payments.Read More: Mortgage Firms Teeter Near Crisis That Regulators Saw ComingThe regulators could take other steps to make clear that pain must be legitimate, such as requiring evidence that borrowers have actually lost their jobs, said the people, who requested anonymity because the discussions are private. Government watchdogs want to see how many consumers seek forbearance before taking more aggressive steps to clarify who can apply, the people said.FHFA spokesman Raphael Williams said the agency interprets the stimulus legislation as requiring that consumers have to have lost jobs or income to qualify for forbearance.Mortgage relief is "for those who do not have the means to make payments due to economic hardship caused by COVID-19," HUD Director Ben Carson said in an emailed statement. "If people are in a situation where they can pay their mortgage or rent on time, they should do so," he said.Delinquency WaveAbout 300,000 borrowers whose mortgages are backed by Fannie Mae and Freddie Mac have requested forbearance as of April 1, according to the FHFA.It's expected to become clearer in the coming weeks just how bad the problem will get, as bills become past due. Mortgage lenders are already preparing for the biggest wave of delinquencies in history after a record 10 million people applied for unemployment benefits over the past two weeks. It's also not clear how long the crisis will last.As many as 30% of Americans with home loans - about 15 million households -- could stop paying if the U.S. economy remains closed through the summer or beyond, according to an estimate by Mark Zandi, chief economist for Moody's Analytics.Nonbank PainNonbanks that service mortgages would likely be hit hard because they're still obligated to distribute monthly payments to investors in bonds tied to home loans even if borrowers stop paying. As a result, servicers are bracing for a liquidity shortfall.And FHFA Director Mark Calabria said in a Bloomberg Television interview last week that Fannie and Freddie, the mortgage giants that backstop about half of the nation's $10 trillion housing market, might have to take delinquent loans on their books if missed payments pile up. Calabria's agency regulates Fannie and Freddie, which have been under government control since the 2008 financial crisis.Read More: Why the Mortgage Market Needs Its Fixes FixedUnder the stimulus legislation, borrowers with loans insured by government agencies such as the Federal Housing Administration and the Department of Veterans Affairs would be eligible for forbearance. Consumers whose mortgages are backed by Fannie and Freddie would also be eligible to skip payments.Who's Eligible?Borrowers would be eligible for 60 days of forbearance if they can demonstrate virus-related financial stress. The relief can be extended for 30 days up to four times.While most of the new programs are aimed at helping home owners, the government is also trying to help renters too. The FHFA has granted mortgage forbearance to U.S. landlords in exchange for suspending evictions if renters can't make payments.Commercial borrowers with federally backed loans could potentially skip payments for at least 30 days with a possible extension of up to 60 additional days. Unlike individual consumers, businesses would have to document financial hardship and they would be barred from evicting tenants as long as they are missing mortgage payments.Helping RentersOfficials are also considering taking additional steps to help renters, a group they have warned could cause further turmoil in the housing market as the crisis continues.As the White House weighs a fourth round of stimulus measures, it's considering recommendations from housing agencies that include providing help through existing state grant and voucher programs to help renters stay in their residences, according to people familiar with the matter. Talks are still in early their early stages and could change, the people said asking not to be named because the talks are private.(Updates with federal agency announcement on flexibility in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

Tomb Sweeping Festival: China pays 'virtual' respects to ancestors

Tomb Sweeping Festival: China pays 'virtual' respects to ancestors The coronavirus outbreak has closed cemeteries across China, so people are paying respects online.

Buy Nasdaq (NDAQ) Stock for Safety Amid Coronavirus Market Volatility?

Buy Nasdaq (NDAQ) Stock for Safety Amid Coronavirus Market Volatility? Nasdaq (NDAQ) shares have surged roughly 30% in the last two weeks and its earnings revisions have climbed amid the broader coronavirus economic downturn...

Denver Mattress Company is ramping up production of face masks and now distributing face shields in the fight against COVID-19

Denver Mattress Company is ramping up production of face masks and now distributing face shields in the fight against COVID-19 Just one short week ago Denver Mattress Company restructured its manufacturing facility to begin production of face masks to assist healthcare facilities and others across the country in the fight against COVID-19. Now exceeding production of 10,000 face masks per day and climbing rapidly, Denver Mattress quickly realized there were even more medical supply needs that weren't being fulfilled.

Optical Transceiver Market by Form Factor, Data Rate, Distance, Fiber Type, Connector, Wavelength, Application and Region - Global Forecast to 2025

Optical Transceiver Market by Form Factor, Data Rate, Distance, Fiber Type, Connector, Wavelength, Application and Region - Global Forecast to 2025 The "Optical Transceiver Market by Form Factor (SFF, SFP, SFP+, QSFP, QSFP+, QSFP28), Data Rate, Distance, Fiber Type (Single-Mode, Multimode), Connector, Wavelength, Application (Telecom, Data Center, and Enterprise), and Region - Global Forecast to 2025" report has been added to ResearchAndMarkets.com's offering.

This Intron Technology Holdings Limited (HKG:1760) Analyst Are Way More Bearish Than They Used To Be

This Intron Technology Holdings Limited (HKG:1760) Analyst Are Way More Bearish Than They Used To Be The analyst covering Intron Technology Holdings Limited (HKG:1760) delivered a dose of negativity to shareholders...

How Much Are Hilong Holding Limited (HKG:1623) Insiders Spending On Buying Shares?

How Much Are Hilong Holding Limited (HKG:1623) Insiders Spending On Buying Shares? We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly...

U.S. SEC official urges delay in public comment on agency rule changes

U.S. SEC official urges delay in public comment on agency rule changes The U.S. Securities and Exchange Commission's lone Democratic commissioner on Friday called for a delay in pending rule changes due to the coronavirus outbreak, while cautioning against excessive regulatory relief in the rush to assist companies struggling with fallout from the pandemic. Commissioner Allison Lee said the agency ought to allow an additional 60 days for public consultation on measures currently under review so as to "adequately assess the economic effect" of relaxing agency rules in light of the economic uncertainty caused by the fast-spreading disease. "The Commission should carefully analyze each action it takes in light of the altered economic and social landscape," Lee said in a statement.

Video: 4 Large-Cap Stocks With Strong Buffett-Munger Characteristics

Video: 4 Large-Cap Stocks With Strong Buffett-Munger Characteristics Editorial Assistant James Li seeks good investing opportunities using GuruFocus' All-in-one Screener Continue reading...

Here's Why We're Not Too Worried About Stavely Minerals's (ASX:SVY) Cash Burn Situation

Here's Why We're Not Too Worried About Stavely Minerals's (ASX:SVY) Cash Burn Situation We can readily understand why investors are attracted to unprofitable companies. For example, biotech and mining...

What Is Eternity Technology Holdings's (HKG:1725) P/E Ratio After Its Share Price Tanked?

What Is Eternity Technology Holdings's (HKG:1725) P/E Ratio After Its Share Price Tanked? Unfortunately for some shareholders, the Eternity Technology Holdings (HKG:1725) share price has dived 35% in the last...

Trump: Won't wear a coronavirus mask because it would interfere with foreign leader meetings

Trump: Won't wear a coronavirus mask because it would interfere with foreign leader meetings President Donald Trump said wearing a mask would interfere with his ability to meet with foreign presidents, prime ministers and "dictators."

Hang in There, Upwork Investors, Better Days Ahead, Says Analyst

Hang in There, Upwork Investors, Better Days Ahead, Says Analyst The trailing twelve-month chart for freelancing platform Upwork (UPWK) makes for queasy viewing. The stock has declined by 73%, 50% of which were shed since the turn of the year. While the majority of companies' valuations have tumbled aggressively since the viral outbreak, Upwork's severe beating is a curious one. You would think as its core business is all conducted online, it would be shielded somewhat.While Upwork hasn't been immune to the COVID-19 pandemic, BTIG's Marvin Fong believes the company's "potential is underappreciated." Fong puts his money where his mouth is, reiterating a Buy rating, along with a $14 price target. Expect upside of a spectacular 160%, should Fong's forecast plays out. (To watch Fong's track record, click here)Despite the alarming downturn, Fong believes Upwork "has held up reasonably well" and is "doing better than most." But the contracting global economy has affected activity on the platform. Job listings on March 31 indicated a 12% drop since the start of the month, with the trend remaining negative, both on the domestic and international front.Although Upwork belongs to the "work-at-home" category, Fong is not surprised to see its business depressed in the near-term. During recessions, the availability of freelancers increases, while jobs become scarcer. The difference this time, though, is that even people in full employment are working from home.Yet, Fong believes there is a brewing opportunity for Upwork here: "What UPWK has going for it in this environment is the ability to help businesses find low-cost talent and provide rapid hiring in a world where physical interviews and onboarding are undesirable.  In the longer run, with more freelancers on the site and businesses of all sizes getting more comfortable with remote workforces, we believe the pandemic could help Upwork's enterprise offering gain improved traction once things settle down and businesses get out of survival mode."Turning to the rest of the Street, Upwork's Moderate Buy consensus rating breaks down into 4 Buys and 3 Hold ratings. With an average price target of $11, investors could see upside of 84%, should the target be met in the coming months. (See Upwork stock analysis on TipRanks)To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a newly launched tool that unites all of TipRanks' equity insights. More recent articles from Smarter Analyst: * 5-Star Analyst Reiterates Bullish Stance on Lyft Stock; Here's Why * Western Digital (WDC) Is Our 'Best COVID-19 Recovery Idea,' Says 5-Star Analyst * Overreaction Presents a Buying Opportunity in Hexo Stock * 3 Cannabis Stocks Set to Thrive Through the Global Shutdown

Coronavirus (COVID-19) Update: Daily Roundup

Coronavirus (COVID-19) Update: Daily Roundup Coronavirus (COVID-19) Update: Daily RoundupPR NewswireSILVER SPRING, Md., April 3, 2020SILVER SPRING, Md.

Apple is offering store workers $100 toward work-from-home gear and a new stress-management tool as other retailers cut costs and layoff employees

Apple is offering store workers $100 toward work-from-home gear and a new stress-management tool as other retailers cut costs and layoff employees Apple is offering $100 to store employees who need to purchase equipment to work from home as stores around the world remain closed.

Opportunities in the Global Carbon Fiber Industry, 2018-2027

Opportunities in the Global Carbon Fiber Industry, 2018-2027 The "Carbon Fiber - Global Market Outlook (2018-2027)" report has been added to ResearchAndMarkets.com's offering.

Metallurgical Corporation of China Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Metallurgical Corporation of China Ltd. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now Last week, you might have seen that Metallurgical Corporation of China Ltd. (HKG:1618) released its annual result to...

Haitong International Securities Group Limited (HKG:665) Stock Goes Ex-Dividend In Just 3 Days

Haitong International Securities Group Limited (HKG:665) Stock Goes Ex-Dividend In Just 3 Days Readers hoping to buy Haitong International Securities Group Limited (HKG:665) for its dividend will need to make...

Amid new research, US recommends face masks to stop virus spread

Amid new research, US recommends face masks to stop virus spread President Donald Trump on Friday recommended that Americans cover their faces with masks when outdoors, a policy U-turn following growing scientific research suggesting their widespread use can stem the spread of the coronavirus. Trump told a White House briefing that the Centers for Disease Control and Prevention (CDC) was urging people to wear face coverings like scarves or homemade cloth masks, but to keep medical-grade masks available for health workers. Speaking to Fox News on Friday, Anthony Fauci, head of infectious diseases at the National Institutes of Health, cited "recent information that the virus can actually be spread even when people just speak as opposed to coughing and sneezing."

ASHP Calls on Trump Administration to Give States Access to Drugs Needed to Treat Ventilated COVID-19 Patients

ASHP Calls on Trump Administration to Give States Access to Drugs Needed to Treat Ventilated COVID-19 Patients The ASHP (American Society of Health-System Pharmacists) asked the Trump Administration to take steps, including releasing drugs from the Strategic National Stockpile to states hardest hit by the COVID-19 pandemic and increasing the quota for new production of opioids, to address critical shortages of medications needed to treat COVID-19 patients.

Warren Buffett's Berkshire Hathaway sold nearly $390 million worth of Delta and Southwest shares this week

Warren Buffett's Berkshire Hathaway sold nearly $390 million worth of Delta and Southwest shares this week The famed investor made the disposals after taking a $5 billion hit on airline stocks in the first quarter.

Small business loan program hits roadblocks as banks write their own rules

Small business loan program hits roadblocks as banks write their own rules Small businesses depending on promised federal money to keep them afloat are now finding themselves locked out of much-needed support, thanks to bureaucratic government tangles and confusion at the banks designated as conduits for the stimulus support.

Analysts Just Slashed Their China Cinda Asset Management Co., Ltd. (HKG:1359) EPS Numbers

Analysts Just Slashed Their China Cinda Asset Management Co., Ltd. (HKG:1359) EPS Numbers The analysts covering China Cinda Asset Management Co., Ltd. (HKG:1359) delivered a dose of negativity to shareholders...

Why You Might Be Interested In Tian An China Investments Company Limited (HKG:28) For Its Upcoming Dividend

Why You Might Be Interested In Tian An China Investments Company Limited (HKG:28) For Its Upcoming Dividend Readers hoping to buy Tian An China Investments Company Limited (HKG:28) for its dividend will need to make their move...

Commvault Adopts Limited Duration Shareholder Rights Plan

Commvault Adopts Limited Duration Shareholder Rights Plan Commvault (NASDAQ: CVLT), a recognized global enterprise software leader in the management of data across cloud and on-premises environments, today announced that its Board of Directors has adopted a limited duration shareholder rights plan (the "Rights Plan").

Mazars USA Develops and Launches Paycheck Protection Program "PPP" Analysis Tool for Small Businesses

Mazars USA Develops and Launches Paycheck Protection Program Mazars USA LLP, a leading accounting, tax, and consulting firm, announced today that it has launched a tool to help small businesses calculate the amount they are eligible to receive from the Paycheck Protection Program (PPP). This tool is available for small businesses, CFOs, and accounting firms to help them navigate the complex and dynamic program, increasing the speed of the application process.

Mnuchin praises first day of small-business loan program - but applicants call it 'confusion' and 'a scam'

Mnuchin praises first day of small-business loan program - but applicants call it 'confusion' and 'a scam' One bank received a staggering $22.2 billion in loan applications in just one day.

Luckin Coffee Scandal Deals New Blow to Corporate China

Luckin Coffee Scandal Deals New Blow to Corporate China (Bloomberg) -- The fallout from Luckin Coffee Inc.'s accounting scandal is spreading far beyond the high-flying Starbucks challenger, with renewed concerns about Chinese corporate governance dragging down stocks across industries and threatening to bring a halt to the country's overseas initial public offerings.The Xiamen-based coffee chain said on Thursday that its chief operating officer and some underlings may have fabricated billions of yuan in sales, upending what was supposed to be one of China's best growth stories. Luckin Coffee shares plunged as much as 81% in U.S. trading and CAR Inc., a rental company founded by Luckin Coffee's chairman, sank 54% in Hong Kong. Popular short-selling targets including Anta Sports Products Ltd. also slumped.Lone Pine Capital, one of Luckin Coffee's top holders, no longer reports a stake in the company, according to a filing. It held a 10.7% stake as of Jan. 9, according to data compiled by Bloomberg.The revelations revived doubts about financial reporting that have for years dogged Chinese stocks listed in the U.S. and Hong Kong, two exchanges frequently picked by company founders to raise new funds. While China recently changed regulations to punish instances of financial fraud onshore, the penalties remain negligible. Just last year, one of China's largest listed drug makers said it overstated cash holdings by more than $4.3 billion."After the Luckin incident, investors will be more careful when investing in Chinese companies that have a short founding history and rely on huge leverage to expand," said Jackson Wong, Hong Kong-based asset management director for Amber Hill Capital Ltd.The news is likely to put at least a temporary freeze on new U.S. listings by Chinese companies, according to four investment bankers who asked not to be identified because they aren't authorized to speak to media. One of the bankers said U.S. investor appetite for Chinese shares already had waned amid a string of disappointing deals and heightened geopolitical tensions between Washington and Beijing.Those concerns come on top of a general flight from risk because of the coronavirus pandemic, which has caused IPO volumes globally to plunge in recent weeks."It will inevitably affect the investors' confidence and market momentum on other U.S.-listed China stocks," said Steven Leung, executive director at UOB Kay Hian in Hong Kong. "It may even affect the Chinese companies' U.S. IPO pipeline because investors would start to question their accountability."Read more: Global Banks, Wary of Some China U.S. IPOs, Walk Away From DealsLouis Tse, Hong Kong-based managing director at VC Asset Management Ltd., disagreed, saying all IPOs have to follow the same procedures and meet the same regulatory requirements."I don't think this will tarnish the names of incoming companies in Nasdaq," he said. "Psychologically it would have an impact, but it's not necessarily on a Chinese company."Outside the Luckin Coffee corporate family, the sell-off on Friday hit companies previously called out by speculators for their financial reporting -- including Anta Sports Products Ltd., Xtep International Holdings Ltd. and 361 Degrees International Ltd. China International Capital Corp., one of the lead managers of Luckin Coffee's IPO last year, slid as much as 5.4% in Hong Kong.Luckin Coffee suspended Chief Operating Officer Jian Liu and others while its board investigates, and it said investors shouldn't rely on previous financial statements for the nine months ended Sept. 30. The transactions in question occurred last year and totaled about 2.2 billion yuan ($310 million), according to its filing.If true, the fabricated sales figure could represent a significant portion of the company's total revenue. Luckin, which has only reported financial data for the second and third quarter of last year after its May public offering, was seen reporting 5.15 billion yuan of revenue for the full year, according to the average of estimates compiled by Bloomberg."Certain costs and expenses were also substantially inflated by fabricated transactions during this period," Luckin said, adding that the board hasn't verified the fabricated sales figures.Thursday's share decline erased what had been a 54% gain since the company went public last year.The coffee chain, founded in 2017, operated about 4,500 stores by the end of 2019 in China. Chairman Lu Zhengyao and Chief Executive Officer Qian Zhiya employed a strategy they used with CAR Inc. more than a decade ago: burning money from investors to quickly grab market share from rivals. That strategy has been successful in winning over investors.Luckin Coffee planned to reach 10,000 locations by the end of next year in a market valued at $5.8 billion. Coffee consumption is only in its initial stages in China, and Luckin Coffee was trying to overtake Starbucks by opening more stores in two years than the industry giant has in two decades. Luckin pulled in Chinese consumers by offering generous discounts.Trouble emerged earlier this year, however. The stock plunged after Muddy Waters Capital tweeted Jan. 31 that it had a short position after receiving what it called a "credible," unattributed 89-page report that alleged accounting issues with the chain and a broken business model. Luckin Coffee denied the allegations.The company raised $865 million from a share sale and a convertible bond offering in January, according to people with knowledge of the matter. It also raised $645 million in its U.S. IPO."Luckin denied short sellers' reports earlier, and then it admitted wrongdoing," said Kenny Wen, a Hong Kong-based wealth management strategist at Everbright Sun Hung Kai Co. "Lots of lawsuits will emerge."(Updates with holding data in third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

'Failure to launch': Lenders, small businesses criticize delays in coronavirus rescue program

'Failure to launch': Lenders, small businesses criticize delays in coronavirus rescue program The coronavirus crisis is putting added pressure ton small business, 29% of which prior were unprofitable and 47% had two weeks or less of cash.

What Is Webjet's (ASX:WEB) P/E Ratio After Its Share Price Tanked?

What Is Webjet's (ASX:WEB) P/E Ratio After Its Share Price Tanked? To the annoyance of some shareholders, Webjet (ASX:WEB) shares are down a considerable 68% in the last month. Given...

This Rare 1969 Ford Mustang Spent 4 Decades in a Garage. Now It's Up for Auction.

This Rare 1969 Ford Mustang Spent 4 Decades in a Garage. Now It's Up for Auction. Ford made just 1359 examples of the high-performance variant.

Oilseeds Industry Opportunity Assessment and Forecast to 2027: Growing Demand for Protein Meals, Increasing Usage in Animal Feed, Rising Demand from the Biodiesel Sector

Oilseeds Industry Opportunity Assessment and Forecast to 2027: Growing Demand for Protein Meals, Increasing Usage in Animal Feed, Rising Demand from the Biodiesel Sector The "Oilseeds - Global Market Outlook (2018-2027)" report has been added to ResearchAndMarkets.com's offering.

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