TAIPEI (Taiwan News) – Just like Luckin Coffee and TAL Education, another United States-listed Chinese firm, iQiyi, has come under fire for allegedly faking key data about its performance, reports said Friday (April 10).
Equity research firms Wolfpack Research and Muddy Waters alleged that the video streaming company, owned by Chinese search engine Baidu, had forged its 2019 revenue figures by up to 44 percent and inflated its number of users by 60 per cent.
The investigation involved a survey of more than 1,000 people belonging to iQiyi’s target demographic in China, reports said. However, the Nasdaq-listed company retorted that the survey contained numerous errors, misrepresentations and unsubstantiated statements.
The allegations of fraud and forged data at several Chinese companies comes as doubts persist about the Chinese government’s handling of the Wuhan coronavirus (COVID-19) outbreak, which turned into a pandemic after cover-up attempts by Beijing. Recent reports of a sharp fall in the number of virus deaths and cases inside China have also been met with widespread skepticism.