Chinese textile company Weiqiao listed on the Hong Kong Exchange (HKEx) in 2003. In March 2017, it announced a delay in the release of its FY16 annual report, prompting a suspension in the trading of its shares. In April, auditors E&Y resigned as the company would not appoint an independent third party to investigate the audit findings. Shinewing was appointed as its replacement. Five months later, in August 2017, Weiqiao released its FY16 annual report and trading in its shares shares resumed. Later that month, short-seller Emerson Analytics published a report questioning the integrity of Weiqiao's financials, alleging that its parent company was taking the cash between reporting periods, unbeknown to independent shareholders. Although Weiqiao denied most of the allegations in the report, it announced that it was seeking retroactive approval of past transactions at an EGM. Fund manager Brandes Investment Partners issued an open letter asking shareholders to vote against the motion which was voted down at the EGM in March 2018. In May 2019, the HKEx listing committee censured Weiqiao Textile and three of its directors for breaching the listing rules and/or the director’s undertaking.

Last updated October 2021

The information on this page has been compiled from publicly available sources. GMT Research Limited has not verified the information and does not warrant its accuracy. Any claims made or views expressed are not necessarily those of GMT Research Limited.