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China Zhongwang issues detailed denial to short-seller's allegations
August 12, 2015 / 1:55 PM / in 2 years

China Zhongwang issues detailed denial to short-seller's allegations

HONG KONG, Aug 12 (Reuters) - China Zhongwang Holdings , the world’s second-biggest aluminium products maker, issued a detailed statement on Wednesday denying allegations made by a short seller that accused it of doctoring its books.

Calling the report by a previously unknown research house Dupre Analytics malicious and groundless, Zhongwang’s latest statement comes weeks after the Chinese company denied that it inflated sales by sending shipments to companies it controls offshore.

Responding to that allegation, Zhongwang said on Wednesday the shipments were transported to independent third parties.

Zhongwang also listed a series of clarifications to Dupre’s claims ranging from doubts over its capital expenditure and revenues to plant constructions.

Dupre’s report had triggered a trading suspension in Zhongwang’s shares in July and the Chinese company has now requested a resumption on Aug. 13.

“The company believes that the allegations in the DA Report contains various misrepresentations, malicious and false allegations and obvious factual errors,” China Zhongwang said in a statement to the Hong Kong stock exchange.

Dupre, whose website does not have a phone number, did not immediately respond to an email seeking comment.

China Zhongwang said it reserved the right to take legal steps in relation to the matters arising from the report, including commencing formal legal proceedings. (Reporting by Meg Shen in Hong Kong, Bengaluru newsroom; Editing by David Evans and Keith Weir)

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