Short-seller struggles to get to bottom of Man Wah
Short-seller Muddy Waters Research says it is prepared for a long struggle over sofa maker Man Wah Holdings (1999), adding that shares of most targeted companies will slump when they immediately buyback shares rather than take action to prove that their financial condition is healthy.
Man Wah has said the company has not pawned stocks to a third party.
Block said other important shareholders, not chairman Wong Man- li, might have sold stocks.
Man Wah halted trading of shares early this month after coming under attack from the short seller. It later resumed trading.
However, the report provided by Muddy Waters has not made a significant impact on share prices of Man Wah. They ended at HK$7.22 per share last Friday, an increase by 8.4 percent from Thursday.