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 (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
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