NEW YORK: Morgan Stanley, Credit Suisse Group AG and Haitong International Securities Group were among the biggest participants in a series of margin loans to Luckin Coffee Inc’s founder before accounting fraud allegations at the high-flying Chinese company triggered a collapse in the stock and caused him to default, a person with knowledge of the matter said.
The banks were part of a group that extended margin debt to Luckin chairman Lu Zhengyao across three funding rounds, said the person, who asked not to be identified as the matter is private.