Update | Latest ‘Enigma’ salvoes fired: China Green denies being Convoy placee, Jun Yang Financial confirms it was briefly a shareholder
Waters muddy further as turmoil surrounds the so-called “Enigma Network” of 50 listed businesses claimed to have had cross holdings in each other
China Green, the Hong Kong trading firm named this week as a defendant in a court writ filed by troubled financial firm Convoy Global Holdings, has denied it was a placee in a share placement linked to Convoy’s former chairman, who is now being sued for asset theft from the HK$4.04 billion placement.
China Green was named by stock commentator and activist investor David Webb in the so-called “Enigma Network” of 50 listed businesses that he claimed had cross holdings in each other, including Convoy, and had approved loans and transactions, which did not make any commercial sense.
It suspended trading on Wednesday after the company was sued by Convoy in a legal action filed on Tuesday against 28 defendants for causing it substantial financial losses.
China Green was named as the 23rd of 28 defendants listed in the writ, filed by units of Convoy under its new management, now being led by interim chairman Johnny Chen Chi-wang.
The plaintiffs alleged agricultural products supplier China Green was among a number of placees in a shares sale in October 2015.
Earlier this month, three of Convoy’s executive directors were arrested by Hong Kong’s anti-graft body the Independent Commission Against Corruption, after which Convoy suspended its duties and named them in the writ as defendants.