The collapse of Luckin Coffee earlier this year caused many investors to become darkly skeptical of Chinese stocks. And the passage of a new Senate bill in May that could force Chinese companies to delist their stocks if they don't comply with new regulations exacerbated that pressure.

Faced with these issues, investors need to be more selective with Chinese stocks. Today, I'll highlight three Chinese stocks investors should avoid: Secoo (NASDAQ:SECO), Cheetah Mobile(NYSE:CMCM), and iQiyi (NASDAQ:IQ).

Luxury e-tailer Secoo went public at $13 in Sept. 2016, but it now trades at less than $3 a share. In its IPO filing, Secoo claimed it was "Asia's largest online integrated upscale products and services platform" by GMV (gross merchandise volume), or the value of all goods sold on its marketplace.

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