(Yicai Global) June 10 -- China Auto Rental’s stock price surged after the country’s biggest car-leasing firm announced the resignation of Chairman Charles Lu, who also chairs scandal-tainted Luckin Coffee.

Shares of China Auto Rental [HKG:0699] closed 10 percent higher today at HKD2.31 (30 US cents), after soaring more than 21 percent in the morning trading session.

Lu, also a non-executive director, resigned yesterday with immediate effect, CAR said in a filing to the Hong Kong Stock Exchange today.

CAR’s stock price has more than halved since early April, when Luckin Coffee admitted it falsified its 2019 revenue by tacking on USD2.2 billion to the actual figure. The Nasdaq, where Luckin is traded, has since told the Starbucks wannabe that it plans to delist the firm.

Beijing-based CAR did not name Lu’s successor, though his departure could pave the way for carmaker Beijing Automotive Group to pick up a 21.26 percent controlling stake in CAR from UCAR, a firm in which Lu owns 10 percent.

Lu’s exit could also result in USD168 million of CAR’s debt becoming due immediately, as some is dependent on him being a director at the firm. CAR has yet to receive notice that creditors are demanding instant repayment, it said.

Editor: James Boynton