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.
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