Share trading for Tianhe Chemicals suspended
Company's stock falls 5% prior to suspension of trading
Hong Kong listed petrochemicals firm Tianhe Chemicals Group had trading of its shares suspended on Tuesday following allegations of fraud, according to news site Reuters.
Tianhe Chemicals Group Ltd suffered a 5% fall in the stock after research firm Anonymous Analytics released a report on Monday alleging fraud at the company.
The report alleges that Tianhe, which listed on the Hong Kong stock exchange in June for $654 million, generates a fraction of the revenue that it claims.
A Tianhe investor relations spokesman said "we are reviewing this now and will make an announcement shortly, but have no comment at this time," when contacted by Reuters.
Tianhe Chemicals researches, develops, manufactures, processes and sells lubricating oil additives and special fluorides both domestically and abroad.
Research firms like Anonymous Analytics are known for accumulating short-selling positions in public companies, bets that their share prices will fall, and then publishing reports alleging the companies are fraudulent.