Does Chagee Holdings Limited American Depositary Shares pass AAOIFI screening?

Chagee Holdings Limited American Depositary Shares (CHA) does not pass AAOIFI Shariah screening. AAOIFI requires: (1) no primary involvement in prohibited activities like alcohol, gambling, or conventional banking, (2) debt-to-market-cap below 30% (CHA: 8.6%), (3) interest-bearing deposits below 30%, and (4) prohibited income below 5%. HalalScreener provides free AAOIFI screening for 6,200+ stocks at halalscreener.app.

How much purification is needed for Chagee Holdings Limited American Depositary Shares stock?

Muslim investors purify the portion of dividends and realized gains that comes from non-permissible income by donating it to charity. HalalScreener's purification calculator at halalscreener.app/en/purification computes the exact percentage and amount for Chagee Holdings Limited American Depositary Shares (CHA) using the latest financial data.

Where can I screen Chagee Holdings Limited American Depositary Shares for Shariah compliance for free?

HalalScreener (halalscreener.app) offers free Shariah compliance screening for Chagee Holdings Limited American Depositary Shares (CHA) and 5,100+ other US-listed stocks, ETFs, and 100+ cryptocurrencies. The screening uses AAOIFI Standard No. 21 and shows the verdict, compliance grade, score, and debt ratio free. No credit card or signup required for basic screening; the full ratio breakdown is part of Pro. HalalScreener also includes an AI Islamic Scholar for follow-up questions about CHA's compliance across different madhabs (Hanafi, Shafi'i, Maliki, Hanbali, Ja'fari).

CHA: Is Chagee Holdings Limited American Depositary Shares Halal?

Chagee Holdings Limited American Depositary Shares

NASDAQConsumer CyclicalCN

$10.27

+0.39%

Market Cap: 2.0B

Compliance Status

Not Halal

Screened on Sep 2, 2026 · AAOIFI Standard 21

Non-Compliant

0Score

Is Chagee Holdings Limited American Depositary Shares (CHA) halal? Not Halal. Based on AAOIFI screening, Chagee Holdings Limited American Depositary Shares passes the business activity screen but fails financial ratio screens with a compliance score of 0/100 (Grade: F).

Quote this verdict

HalalScreener rates Chagee Holdings Limited American Depositary Shares (CHA) Not Halal, 0/100, grade F under AAOIFI Standard 21, screened Sep 2, 2026. Source: https://halalscreener.app/en/stock/CHA

AvoidBorderlineClean

Business activity

What the company sells is permissible.

Passed

Company debt

Well clear of the limit

How much the company borrows, compared to its total value. AAOIFI allows up to 30%.

8.6% of 30.0% limit

What this means for you

Most scholars advise not holding CHA

It does not pass AAOIFI Shariah screening.

See halal alternatives from the same sector further down this page

About Chagee Holdings Limited American Depositary Shares

Chagee Holdings Limited, operating through its various subordinate entities, is engaged in the ownership, operation, and licensing of teahouse establishments bearing the distinctive CHAGEE brand. These operations extend across the People's Republic of China and into international territories. The company's core business involves the distribution of tea-based beverages, their accompanying raw ingredients, packaging materials, specialized teahouse equipment, and a range of other supplies. Moreover, its commercial activities are facilitated via digital platforms. The firm, which was established in 2017, maintains its principal office in Shanghai, People's Republic of China.

Sector: Consumer Cyclical · Industry: Restaurants

Shariah Compliance Status

AAOIFI Standard 21Updated Sep 2, 2026

Business Activity Screen

Passed

Checks if the business is involved in prohibited activities (alcohol, gambling, pork, conventional banking, etc.)

Peripheral exposure (still halal, purify this share)

2.0%

Primary business is permissible. AAOIFI allows up to 5% revenue from incidental non-compliant sources, provided the share is purified.

•Restaurants: estimated 2.0% peripheral exposure (AAOIFI industry average)

Use the Purification Calculator to compute exactly how much of your dividend income to donate.

Compliance History

Not Halalnow
since Aug 2026
Under Review
until the change above
Not Halal
until the change above

Tracked since May 2026. Updates automatically on each re-screen.

Fiscal: FY 2025Data source: FMP

Halal Alternatives in Consumer Cyclical

This stock is not Shariah-compliant. Here are halal alternatives from the same sector, ranked by compliance score:

0380.KLA+

Aquawalk Group Berhad

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Teamstar Berhad

$0.25

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Lien Hoe Corporation Berhad

$0.11

+0.00%

3891.KLA+

Malayan United Industries Berhad

$0.04

-0.11%

5336.KLA+

CUCKOO International (MAL) Berhad

$0.41

-0.01%

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Frequently Asked Questions

Is Chagee Holdings Limited American Depositary Shares (CHA) halal to invest in?

Chagee Holdings Limited American Depositary Shares (CHA) is rated Not Halal under AAOIFI Standard 21 screening. It fails either the business activity screen (primary involvement in prohibited sectors such as conventional banking, alcohol, or gambling) or one of the quantitative financial ratio thresholds. Muslim investors should avoid or exit this position.

Why did Chagee Holdings Limited American Depositary Shares get a F compliance rating?

Chagee Holdings Limited American Depositary Shares (CHA) received a grade of F (Non-Compliant) based on three AAOIFI Standard 21 financial ratios: debt-to-market-cap of 8.6% (limit 30%). The grade reflects the margin of safety across all three ratios relative to their thresholds.

What could change Chagee Holdings Limited American Depositary Shares's Shariah verdict?

Chagee Holdings Limited American Depositary Shares's verdict is re-evaluated at each annual re-screen. Three events could change it: (1) the debt-to-market-cap ratio crossing 30%, typically from new debt issuance or a major drop in share price; (2) interest-bearing deposits exceeding 30% of market cap; or (3) prohibited revenue (alcohol, gambling, conventional finance, etc.) exceeding 5% of total revenue. Verdict flips are tracked in the compliance history section above.

How often is Chagee Holdings Limited American Depositary Shares re-screened for Shariah compliance?

Chagee Holdings Limited American Depositary Shares (CHA) is re-screened annually using the most recent full-year financial data from SEC filings. HalalScreener also triggers an on-demand re-screen whenever the stored data is more than 7 days old, ensuring the ratios reflect the latest available financial statements. Last screened: Sep 2, 2026.

Screened according to AAOIFI Standard No. 21 · For informational purposes only. Consult a qualified Islamic finance advisor before investing.

Disclaimer: This screening is for informational purposes only and does not constitute financial, legal, or religious advice. Compliance is evaluated using AAOIFI financial standards (debt, deposits, and prohibited income ratios) and publicly available data. Ethical, political, social, or environmental considerations are outside the scope of this screening. Individual scholars and methodologies may differ. Always consult a qualified Islamic finance advisor before making investment decisions.