Chinese hotel operator Huazhu (since renamed H World Group) listed on the NASDAQ in March 2010 and then a secured a secondary listing in Hong Kong in September 2020. Later that month, it was attacked by short-seller Bonitas Research alleging that the company secretly controlled about a quarter of its supposedly independent franchised/manachised hotels through undisclosed related parties or employees. Huazhu was reported to be funding these hotels, with the cost of this support (and possibly other operating costs) being misrepresented as capex and then parked as faked fixed assets. Given that the report failed to prompt any director and/or auditor resignations, the allegations remain unproven.

Last updated July 2022.

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