Hongqiao’s USD Bonds Changed to ‘Not Recommended’ at Lucror

"It is interesting that China Hongqiao did not issue a credible rebuttal against Emerson Analytics’ allegations, and instead chose to seek outside help,” Trung Nguyen, a Singapore-based senior credit analyst at Lucror Analytics, said in a note.

Hongqiao’s external public relations firm Bell Pottinger declined to comment.

NOTE: Hongqiao tycoon sought China help on auditor talks, short seller.

The 2018 notes rose 1.3 cents on the dollar this month to 94.1 cents as of 11:14am in Hong Kong; while the 2017 notes climbed 1.7 cents to 95.8 cents.

Hongqiao halted share trading last month and said it may delay its full-year results as it grapples with issues raised by its auditor, Ernst & Young LLP, which suspended work on accounts for the year through December.

This was after it was hit by claims from Emerson Analytics that questioned its accounts and valuation.

Earlier stories:

- China Hongqiao said to seek waiver to avoid loan default

Bloomberg News
April 7, 2017, 03:35:46 GMT

Reporting by Lianting Tu; Editing by Neha D'Silva and Chan Tien Hin