Tianhe Chemicals plunges as much as 47pc after share trading resumes
Mainland chemical firm sees shares close 39.8 per cent lower as investors side with anonymous critics over fraud charges
Investors dumped shares of Tianhe Chemicals Group yesterday, siding with "hacktivist" Anonymous Analytics, which has accused the mainland company of fraud, and driving the stock price down by as much as 47 per cent on its first day of trading in more than a month.
On Wednesday, Tianhe said it had applied to resume trading and also shot back with accusations including that a director's email had been hacked and that Anonymous Analytics had forged the signature of Tianhe's chairman.
Tianhe's shares fell as low as HK$1.22 before closing the day at HK$1.39, down 39.8 per cent from the previous finish.
"There is a battle for credibility between anonymous critics and a Chinese company," corporate governance campaigner David Webb said. "In this case, it appears that investors believe the anonymous critics more than the company, judging from the market's reaction."
The past two days have seen Tianhe and Anonymous Analytics exchange accusations.
Anonymous Analytics yesterday issued a 20-page report reiterating, among other things, that Tianhe had yet to name the end-customers of its anti-mar chemical product, used as a protective coating on mobile phone screens.