Huishan Dairy, Muddy Waters Target, Sinks 85% in Hong Kong
- Sudden plunge erases $4.1 billion in Chinese company
- Muddy Waters said in December it was shorting the stock
Carson Block Says Huishan Report Started Chain Reaction
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Shares of China Huishan Dairy Holdings Co. sank by a record 85 percent in Hong Kong before the company halted trading.
The sudden crash wiped out about $4.1 billion in market value. A record 779 million shares in the Shenyang-based company changed hands, the most on Hong Kong’s exchange. Chairman Yang Kai said online speculation its largest shareholder misappropriated 3 billion yuan ($435 million) to invest in Shenyang real estate are untrue, Netease reported, citing a phone interview.