Trading in Sino Forest was halted in Toronto yesterday after shares in the Chinese forestry group plunged more than 20 per cent following a highly critical research report by Muddy Waters, a research firm founded by short seller Carson Block.
Sino Forest is one of dozens of Chinese companies listed on foreign stock exchanges – three of them in the forestry sector – that have been targeted by short sellers in recent months and have had their shares suspended from trading, reports FT.
China Forestry, another mainland plantation operator, had its Hong Kong-listed shares suspended in January and its chief executive has been arrested for the alleged embezzlement of $4.6m.
Small-cap Cathay Forest Products, which is also listed in Toronto, has been suspended from trading since January after breaching stock exchange rules related to investment disclosure
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