China Internet Nationwide Financial Services (CIFS) listed on the NASDAQ in August 2017. In December that year, it was attacked by Muddy Waters alleging fraud. The company announced an investigation which concluded  that the allegations were baseless in April 2018. However, the report prompted a more than 85% collapse in the company's share price over the next year despite management optimism over its prospects. In March 2019, the company replaced its auditor, in April its CFO resigned and then in May it reported very poor FY18 financials with a loss. Finally, in November 2019, the company reported a US$52m impairment representing more than 80% of its loan portfolio. Senior management resigned shortly thereafter. The impairment would seem to confirm Muddy Water's allegations.

Last updated March 2022

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