Carson Block takes on China's top dairy farm in latest short

Trading in shares of China Huishan Dairy Holdings Co was triple the three-month average on Monday, when it resumed trading after being suspended on Friday. Prominent short seller Carson Block targeted the Hong Kong-listed dairy farm operator and said he would seek out more companies in the city.

Muddy Waters Capital LLC, founded by Block, said it had shorted Shenyang-based Huishan and alleged in a report last week that it's "worth close to zero" and questioned its profitability, causing the stock to drop on Friday before it was suspended.

Huishan, China's largest operator of milk farms with a market value of HK$37 billion ($4.8 billion), said the allegations in the report are groundless and contain misrepresentations, according to a statement late Friday.