Chinese diaper company Hengan listed in Hong Kong in 1998. In December 2018, it was attacked by short-seller Bonitas Research alleging that the company was faking profits and hiding the evidence in large cash balances. Despite large cash balances, the company was raising debt which appeared to be financing working capital and possibly dividends. The fraud allegations against Hengan were not proven in that there were no major resignations. However, financial and share price performance has deteriorated since the allegations were made.
Last updated April 2022
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