Iqiyi accused of revenue inflation by short sellers
Followed the admission of falsifying transactions by Luckin Coffee after pressure from an anonymous report and attendant investigations launched by several law firms, another Chinese tech firm Iqiyi has been targeted by the US short sellers. In the report released by Wolfpack Research, the video streaming platform was accused of inflating revenue figures and user numbers. Iqiyi officially denied all the claims on Wednesday with an allegation that the report was “full of errors and misleading”, and indicated the company has been compliant to US securities regulations. Both Iqiyi and Baidu, the former’s parent company, saw share prices drop by market close on Tuesday.