Dec 16 (Reuters) - China Huishan Dairy Holdings Company Ltd
* clarification Announcement In Relation To Muddy Waters Report Resumption Of Trading
* muddy waters report has made allegations which are groundless and contains various misrepresentations
* noted significant increase in trading volume of shares of company in morning trading session on 16 december 2016
* board has also noticed a report released on 16 december 2016 by muddy waters capital llc on company
* application has been made for resumption of trading in shares of company on stock exchange on 19 december 2016
* "despite increase in short term debts during interim period, its debt ratio as at that date has reduced to approximately 41%"
* "chairman of company has confirmed to board that he does not have any unfilled margin calls "
* muddy waters report states author ``is short'' securities of company; co believes author might profit from a drop in price
* company reserves its rights to take legal action (including commencing litigation) in connection with muddy waters report
* "group never purchased alfalfa from anderson & grain company directly during last three financial years" Source text for Eikon: Further company coverage: