Man Wah sinks after short seller Block targets shares

HONG KONG: Shares of Man Wah Holdings Ltd sank in Hong Kong after short seller Muddy Waters questioned the firm’s profitability.

The stock fell 10% before trading was suspended, in its biggest two-day retreat since 2011. The sofa maker has inconsistencies in its taxes and undisclosed debt, Muddy Waters founder Carson Block said at the Sohn Conference in Hong Kong yesterday, citing it as evidence of fraud. He estimated that debt is at least 48% higher than disclosed.