Factbox: Chinese companies targeted by short sellers in Hong Kong in first half

Ingdan

07/08/2017 01:00

HONG KONG, Aug 7 (Reuters) - Short sellers are increasingly targeting Hong Kong-listed 
Chinese companies. 
    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 DEFENCE   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) 
 ((elzio.barreto@thomsonreuters.com;)(852)(2843-1608; Reuters Messaging: 
elzio.barreto.thomsonreuters.com@reuters.net)) 
 
Keywords: CHINA SHORTSELLERS/