Fujian-based food producer China Minzhong has called a trading halt on its shares after a report published by short-seller Glaucus Research Group caused its shares to plunge 48 per cent -PHOTO: CHINA MINZHONG FOOD CORP
Fujian-based food producer China Minzhong has called a trading halt on its shares after a report published by short-seller Glaucus Research Group caused its shares to plunge 48 per cent.
China Minzhong called for the halt at 11.15 am on Monday, pending the "release of material announcement".
Its shares opened at S$1.015 each but rapidly plunged to 53 cents, down 48.5 cents or 48 per cent. More than 24 million shares changed hands.
In a 49-page report published this morning, Glaucus alleged that Minzhong fabricated sales to its top two customers, and that its financial performance for its fresh produce segment, with average margins of 66 per cent in the past five years, was too good to be true.
China Minzhong called for the halt at 11.15 am on Monday, pending the "release of material announcement".
Its shares opened at S$1.015 each but rapidly plunged to 53 cents, down 48.5 cents or 48 per cent. More than 24 million shares changed hands.
In a 49-page report published this morning, Glaucus alleged that Minzhong fabricated sales to its top two customers, and that its financial performance for its fresh produce segment, with average margins of 66 per cent in the past five years, was too good to be true.
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