Huishan Dairy Bounces Back from Short-Seller Attack

(Beijing) — Shares of Hong Kong-listed Huishan Dairy rebounded this week after an attack by short seller Muddy Waters, as investors dismissed the kind of fraud allegations often leveled against Chinese firms in similar assaults.

U.S.- and Hong Kong-listed Chinese stocks have become a favorite of short sellers like Muddy Waters due to a lack of transparency created by the companies' cross-border status. A wave of attacks crested five years ago, prompting a confidence crisis that led to a major eviction of many smaller companies from New York by the U.S. securities regulator.