Bosideng International Holdings Ltd. shares fell the most on record after a short seller report questioned the Chinese clothing company’s accounting practices.
Hong Kong-listed Bosideng overstated its revenue and profit, according to a note published on Monday by Bonitas Research. The stock fell as much as 28% before being suspended. Bosideng said in a statement that the report contains “untrue and misleading information,” without providing more details.
Short sellers have in recent years zeroed in on Hong Kong stocks. The city, the world’s fourth-biggest equity market by value, has seen several corporate governance blow ups, with companies losing 90% of their value in a single day. The local exchange operator and securities regulator have raised the threshold for going public, and have said they are cracking down on corporate fraud.
Contact editor Teng Jing Xuan (firstname.lastname@example.org)