Huishan dairy denies fraudulent financial disclosure

Leading dairy firm China Huishan denied fraud charges published by Muddy Water LLC, a due diligence based investment firm that conducts investigative research on public companies. Huishan says that its operations are proper and that its financial report disclosure is true and accurate.

The Hong Kong-listed dairy company ranks No 1 in Northeast China and No 5 in the national market, with the 3.09 billion yuan ($444 million) worth of liquid milk sales in fiscal year 2016, according to public information.

The mainland plant, which carried out a $1.3 billion listing in Hong Kong in 2013, was suspended when down 2.14 percent on Friday morning, following the report from the US-based short seller.