Hong Kong court issues first ban on short seller report
Court blocks short seller Emerson Analytics from issuing any further reports on nation’s largest aluminium smelter, China Hongqiao, the first time such an injunction has been applied
A Hong Kong court has issued its first ban on a short seller releasing a negative report on a mainland company under its attack.
The Court of First Instance issued an injunction on December 12 to ban short-seller Emerson Analytics issuing any further reports about China Hongqiao, the nation’s largest aluminium smelter by capacity, according to a court order seen by the South China Morning Post.
The order, signed by deputy High Court judge Kent Yee on Tuesday, is expected to be posted on the judicial website soon, halting Emerson Analytics from further speaking of, or publishing any report about Hongqiao.
The banning order will stay in place until the court is presented with any further evidence which might change its decision, the court order said.
“If you disobey this order you may be found guilty of Contempt of Court and may be sent to prison, fined or your assets seized,” the court order wrote.
Hongqiao has filed a number of injunction document applications with the Hong Kong Court between October and early December, related to the one single application, but the latest appears to have persuaded the authorities that they had a case.