Here are details of eight public campaigns by short sellers against Hong Kong-listed companies in the first six months of this year, based on data from Activist Insight:
(Note: The short sellers may have taken positions well before making a public announcement)
TARGET SHORT-SELLER DATE ACCUSATION COMPANY DEFENSE SHARE PERFORMANCE
China Emerson Feb- Questioned Allegations are Dropped 11 pct
Hongqiao Analytics 28 whether profits biased, from day of short
inflated. Says materially seller's report
costs appear misleading, until March, when
artificially low untrue and shares were
and said it was unfounded. halted.
subsidized by
connected
parties.
Fullshare Glaucus Apr- Stock Allegations are Has gained 10.5
25 manipulation misleading and pct since.
alleged. groundless.
Fullshare GeoInvesting May- Accounting Company didn't Has gained 25 pct
03 questioned. responded to since.
GeoInvesting's
claims or
Reuters request
for comment on
the allegations.
Cogobuy Blazing May- Revenue and net Allegations are Has dropped 49
Research 22 profit levels biased, pct.
challenged. Also selective,
questions about inaccurate,
online platform incomplete,
IngDan. false and
misleading and
have been made
with the
intention to
alarm
shareholders.
AAC Gotham May- Questioned Vigorously Has fallen 2.3
Technologies Research 11 accounting. denies the pct.
Suggested allegations,
profits information
overstated. contained is
inaccurate and
misleading.
Dali Foods GeoInvesting Jun- Questioned Allegations were Has gained 2 pct
07 capital spending made without due
and operation consideration of
costs. Suggested the underlying
there were tax facts and based
inconsistencies. on selective and
biased
information, and
are considered
to be
inappropriate
and misleading.
Man Wah Muddy Waters Jun- Claimed to have Accusations Shares virtually
07 found tax about financial unchanged.
inconsistencies, irregularities
undisclosed are groundless
debt, outsized and false. Man
profit margins. Wah has no
undisclosed debt
and stands by
its 2017 annual
report.
China Blazing Jun- Questioned size Company did not Shares were halted
Household Research 22 of revenue and respond to before trading
net income Blazing Research started the day
reported. Cited allegations or the report came
material Reuters request out. Hong Kong
discrepancy for comment on securities
between the allegations. regulator has
financial since ordered
figures indefinite halt.
disclosed and
its tax filings.
(Reporting by Elzio Barreto; Editing by Martin Howell)