China Huishan Dairy (Huishan) listed on the Hong Kong Exchange (HKEx) in September 2013. Three years later, in December 2016, short-seller Muddy Waters issued two reports which alleged that Huishan was a fraud. Faked sales and profits had reportedly been parked in inflated fixed assets and fabricated cash balances. Four months later, in March 2017, Huishan's share price collapsed 85% in a day. It transpired that the company's CFO, who was married to its founder, had taken a leave of absence owing to stress. The company was also behind on some bank payments. Almost a year after Muddy Waters' first report, on 15 November 2017, the board placed the company into provisional liquidation given that it had net liabilities of RMB10.5bn (US$1.6bn) in China as at 31 March 2017. Huishan is a confirmed fraud.

Last updated October 2021 

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