China Investors Face Wake-Up Call in Sound Global Slide
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A Beijing-based water treatment company is fueling concern about corporate-governance risks in China as its bonds fall by a record after it flagged potential audit issues.
Sound Global Ltd.’s U.S. currency 2017 notes slid 22.3 cents to 68 cents on the dollar as of 5:10 p.m. in Hong Kong after it said in a filing Tuesday that audit work will be discontinued as issues are resolved. The debentures have tumbled from 108 cents at the beginning of the year, after research firm Emerson Analytics Co. alleged in February Sound Global exaggerated revenue.