China Hongqiao Shares Drop as Trading Resumes After Short Attack

China Hongqiao on Monday evening said allegations contained in Emerson Analytics report are “biasedly- selected, materially misleading, untrue and unfounded” and resumed trading this morning.

Emerson last week published a report questioning the Hong Kong-listed company’s financial performance, accounting and valuation.

“Emerson’s allegations resonated with what we have written on Hongqiao’s corporate governance risk,” Lucror credit analyst Trung Nguyen wrote on March 2.

Hongqiao’s 2018 bonds rose 0.125 cent on the dollar to 99.559 cents as of 9:25 am in Hong Kong, according to Bloomberg- compiled prices.

The notes dropped 1.776 cents on Monday to lowest since May, 2016: data.

Shares down as much as 6.9% to lowest since Jan. 10; volume more than triple the three-month daily average.

Short interest at 8.8% of free float on March 3, down from 12- month high of 11.44% on Dec. 19: IHS Markit data.

NOTE: March 1, China Hongqiao Rejects Report From Emerson After Shares Tumble.

Bloomberg News
March 7, 2017, 01:54:39 GMT

Reporting by Lisa Pham and Lianting Tu; Editing by Divya Balji, Neha D'Silva and Lisa Pham