This article only represents the author's own views.
It was one of China’s last major IPOs in New York before the current freeze, raising $320 million in a February 2021 New York listing on big hopes for China’s cloud services market. But what started as a drizzle with so-so financial results quickly turned into a downpour onto shares of Cloopen Group Holding Ltd. (RAASY.US) after its May 2022 disclosure of up to 30 million yuan ($4.2 million) in fake sales on its books.
Now, Cloopen is hoping to turn the page on its dubious past following a newly announced settlement of fraud charges leveled against it by the U.S. Securities and Exchange Commission (SEC). The company is hoping to follow in the footsteps of the similarly scandal-tainted Luckin (LKNCY.US), which admitted to even larger fraud in a case that shocked Wall Street in 2020 and was likely a factor behind the SEC’s crackdown on new Chinese IPOs dating from 2021.