Shares in embattled aluminium extruder China Zhongwang Holdings could dive to just HK$3 because of a United States anti-dumping attack on its industry, a top investment bank has claimed. Zhongwang, which has been fighting claims about the accuracy of its accounts since shortly after its HK$7 a share initial public offering in May last year, now faced losing business because US politicians might impose punitive import taxes on its American customers that would stop them buying from China, Morgan Stanley said. The US International Trade Commission (ITC) said last month American companies were being damaged by the low cost of Chinese extruded aluminium, which is used in products from door frames to solar panels. Morgan Stanley analysts Charles Spencer and Mean Phil Chong said in a research note that Zhongwang's profits could collapse if the price of the metal falls to 6,000 yuan (HK$6,863) per tonne by 2015 from more than 15,000 yuan currently, not least because the Liaoning firm was also facing increased competition from Aluminum Corp of China. In the worst case scenario, Zhongwang could fall to HK$3, the bank said. It added the price might rise to HK$8 if industry conditions were extremely favourable. But, the analysts concluded, 'investors should use any [price] rally to sell the stock'. Zhongwang's shares fell 9 per cent to HK$4.95 on Monday, the day Morgan Stanley issued its note. They recovered yesterday to HK$5.01, but have plunged 37 per cent since their year high on January 6. The firm got 97 per cent of its sales from the mainland in 2008. But it has rapidly built a massive US business since. Its exports surged to 70 per cent of sales by volume by March this year, with most going to America. Some investors and analysts have questioned Zhongwang about its sudden surge in US business. They have also noted discrepancies in its export figures and data provided by the US government. The firm said it sold 5.6 billion yuan of extruded aluminium to the US last year. But the ITC's anti-dumping report, issued in June, claimed US companies bought just US$514 million worth of extruded aluminium from China last year. Zhongwang said the discrepancy arose because the US probe only covered certain classes of its products. It was unable to say which of its products were not included in the US figures or how this affected the government data. The ITC said in its report that Zhongwang did not respond to questions during the anti-dumping investigation. 'The US import figures released by the US government relate only to the import of certain types of aluminium extrusion products under the scope of the anti-dumping investigation,' a Zhongwang spokesman wrote in an e-mail. The US anti-dumping attack is the latest in a string of woes for Zhongwang. In September last year, mainland newspaper The Economic Observer claimed the top 10 customers Zhongwang named in its initial public offering prospectus did not buy from the company in 2008. The newspaper retracted its report. Zhongwang then hired accountants Ernst & Young to review the prospectus. But the accountant was unable to finish its job. In a February 9 stock market announcement, it admitted Ernst & Young reported facing 'external limitations in its verification procedures which require information of independent third parties'. In April, Zhongwang reported an 87 per cent profit rise for last year. But it also revealed it had lent 2.3 billion yuan to a Liaoning construction firm named Hongwei, without providing detailed reasons for the unusual loan.