Short-seller Carson Block has revealed his next target: furniture maker Man Wah Holdings.
Shares of the Hong Kong-listed company fell 10.3 percent shortly after after Block made that announcement at the Sohn Hong Kong Conference on Wednesday. Trading of Man Wah shares was halted by 2:40 p.m. HK/SIN.
Outlining the rationale behind his decision to short Man Wah, Block said the company has undisclosed debt, which means it is less likely to be profitable and generate much less cash flow than it says. Another point he raised is the company’s alleged inconsistencies in taxes, which he claimed is an indicator of fraud.
Block also raised questions about the company’s China sales growth story.
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