Huishan Dairy, a dairy company in China, resisted the pressure of international short-selling institutions and held its share price, which finally fell short. Yesterday, the stock price of Huishan Dairy, a Hong Kong stock with a steady trend, suddenly suffered a heavy fall at 1 1: 30 in the morning, with a drop of 90% in less than half an hour. The stock price went from around HK$ 2.8 to HK$ 0.25. Subsequently, although the stock price rebounded, it was still suspended urgently. In the end, Huishan Dairy closed at HK$ 0.42, and its share price fell by 85%.
According to public information, just the day before the stock price of Huishan shares plummeted, the Financial Office of Liaoning Provincial Government just organized a meeting on Huishan Dairy, asking banks and other financial institutions to have confidence in Huishan Dairy instead of lending, and proposed that Huishan Dairy could be given four weeks to solve the problem of defaulting on some interest.
At the same time, the Liaoning Provincial Financial Office proposed that Huishan Dairy give up part of its equity to obtain enough funds, strive to restore its interest-paying ability in two weeks, and solve the liquidity problem in four weeks. In addition, the local government plans to buy a piece of land in Huishan with more than 90 million yuan to inject funds into enterprises. It is said that China Bank, Jiutai Rural Commercial Bank and Zheshang Bank all expressed their willingness to believe that Huishan Dairy can pay all the arrears of interest within four weeks. But somehow, on the second day after the coordination meeting, the share price of Huishan Dairy suddenly plummeted.
Whether the muddy water that had previously shorted Huishan played a role in this bizarre stock price crash has also attracted people's attention. June 65438+ February 65438+Last June, Muddy Water Company, an American short-selling institution, suddenly released an investigation report on Huishan Dairy, arguing that Huishan Dairy was fraudulent and even called it a "liar". Muddy water company even publicly claimed that Huishan Dairy's valuation was zero.
In this report, Muddy Waters claimed that Huishan Dairy's previously announced earnings were suspected of fraud. In addition, the company also exaggerated the capital expenditure of the ranch, and pointed out that Yang Kai, the chairman of the company, was suspected of misappropriating the company's assets of at least 65.438 billion yuan. In addition, Muddy Water also pointed out in the report that Huishan Dairy was on the verge of default because of its high leverage ratio. In order to show the authenticity of this report, Lishui Dairy said that they visited 35 farms and 5 production bases for several months with a number of dairy experts, and even used drones to explore.
For this extremely lethal report, Huishan Dairy urgently suspended trading on the same day, and issued an urgent clarification announcement that night, responding to the reports of Surabaya one by one, and insisting that there was no fraud. Huishan Dairy pointed out at that time that Surabaya was "shorting the company's stock" and believed that the publisher of the report might benefit from the decline in Huishan Dairy's share price, and the company reserved the right to take legal measures on the report.
With the announcement of clarification, Huishan Dairy decided to resume trading on the next trading day. However, on the occasion of the resumption of trading, Muddy Water also threw out a report, saying that Huishan Dairy's income was also fraudulent and there were a lot of false income. In this regard, Huishan Dairy also issued a clarification announcement again. After two confrontations between short-selling institutions and listed companies, Huishan Dairy's share price did not plummet on the first day of resumption of trading, but rose. In the following days, Huishan Dairy's share price closed up.
Although it is still uncertain whether the plunge in Huishan's share price is related to short selling in muddy water, it may be a coincidence that tomorrow coincides with the first100th day of the short selling report in muddy water. Yesterday's plunge was the last trading day of this 100 day, as the stock market closed today and tomorrow.