Muddy Waters Eyes More Hong Kong-Listed Firms After Huishan
- Huishan Dairy says Muddy Waters allegations are ‘groundless’
- Short seller concerned about stock manipulations in Hong Kong
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Carson Block said he would seek out more Hong Kong-listed companies to target, after the prominent short seller took aim at China Huishan Dairy Holdings Co. with a report alleging the $4.9 billion dairy farm operator was “worth close to zero.”
Block, founder of Muddy Waters Capital LLC, said in an interview he’s concerned prices of stocks traded in the city can be manipulated because of the low 25 percent free-float requirement. That also makes Hong Kong a challenging market to sell short, Block said by telephone from San Francisco. Separately, Huishan said the Muddy Waters allegations are groundless and contain misrepresentations.