Tianhe Chemicals hits back at analysts' claims of fraud
After US analyst group calls for prosecutions and a delisting, the mainland company rejects allegations of misconduct and threatens action
Tianhe Chemicals Group has strongly denied allegations of fraud by Anonymous Analytics, a US group of anonymous analysts, and threatened to sue it for damages.
In an announcement last night, the Hong Kong-listed firm said there has been active stock borrowing and short selling of its shares recently. Its shares were suspended from trading at 11.20am yesterday, shortly after Anonymous Analytics issued a report that alleged fraud, accusing Tianhe of inflating its sales and profits.
"The report contains errors, misleading statements and malicious accusations against the company and its directors," the Tianhe statement said, adding it reserved the right to sue Anonymous Analytics for damages.
The Hong Kong stock exchange and the Securities and Futures Commission declined to comment.
"We expect that regulators will delist Tianhe and prosecute the executives and promoters responsible for this fraud," said the report by Anonymous Analytics.
The [Anonymous Analytics] report contains errors [and] misleading statements …
On August 22, the SFC said: "In considering whether to take action against any persons, including sponsors, who have authorised the issue of a prospectus containing a material untrue statement, the SFC will have no hesitation in relying on the existing criminal liability provisions."