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The disappearance of Ultrasonic executives is the second time a senior executive from a Chinese company listed on the Frankfurt Stock Exchange has disappeared this year. Photo: Reuters

Disappearance of Ultrasonic chiefs taints China firms listed in German

The mysterious disappearance of two senior executives at Ultrasonic, a Chinese footwear maker listed in Frankfurt, along with most of the company's cash is casting a shadow on companies seeking to woo more investors through the German market.

The mysterious disappearance of two senior executives at Ultrasonic, a Chinese footwear maker listed in Frankfurt, along with most of the company's cash is casting a shadow on companies seeking to woo more investors through the German market.

Shares of Chinese fashion label VanCamel slumped as much as 22 per cent, textile maker Tintbright slid as much as 14 per cent and glassmaker China Specialty Glass fell up to 9.5 per cent in Frankfurt trading after Ultrasonic said on Tuesday chief executive Wu Qingyong and chief operating officer Wu Minghong were unreachable and their whereabouts unknown.

It is the second time a senior executive from a Chinese company listed on the Frankfurt Stock Exchange has disappeared this year. Packaging company Youbisheng Green Paper replaced chief executive Huang Haiming on August 1 after he vanished. It entered preliminary insolvency proceedings two weeks later.

Of 10 companies that listed in Frankfurt this year, three have Chinese origins, according to Deutsche Boerse, which operates the Frankfurt exchange. Snowbird, a Chinese company that makes down bedding and clothing, plans to list in Frankfurt on September 29.

Cologne-based Ultrasonic, a holding company for a group that is mainly active in China, said it is discussing with banks and investors whether it can stay open.

"The main goal is to keep operations running," said Johannes Mauser, the supervisory board chairman.

The missing cash may include part or all of a US$60 million credit facility Ultrasonic had secured last August from Nomura International Hong Kong in part to fund acquisitions. "Supposedly, it is gone," Mauser said.

This article appeared in the South China Morning Post print edition as: Scandal taints Chinese firms
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