The shares of Hong Kong listed car rental company CAR Inc. plummeted by 70 percent in the early opening bell on Friday, after shares of Nasdaq listed domestic coffee chain Luckin Coffee plunged 80 percent on fraud findings on the previous day.

The shares of CAR warmed up a little bit to about 55 percent downing in 10:13 a.m. BJT, but trade was suspended because of abnormal fluctuation.

The chairman of the coffee chain and CAR Inc. is the same person, Lu Zhengyao, a Chinese billionaire and angel investor. According to Wind, Lu holds 23.94 percent of Luckin's shares and he and his wife Guo Lichun hold 29.76 percent of CAR's shares.

Luckin said on Thursday that an initial investigation showed that total sales tied to fabricated transactions from the second quarter of 2019 to the fourth were about 2.2 billion yuan (310.02 million U.S. dollars). Its chief operating officer, Liu Jian, and several other employees for misconduct related to the scandal were suspended by the company.

Some people are speculating about the relationship between Liu and Lu. From 2008 to 2015, Liu has served as the deputy general manager of the vehicle management center in CAR Inc. and the person in charge of benefit management. After that, he has been the director of the benefit management of the UCAR Technology Inc., which is the parent company of CAR Inc. for three years. 

(Cover: VCG)