Reported about 1 year ago
Reports reveal that Chinese construction company Hongtao Group maliciously deceived investors with 'opaque information', hiding poor business operations while frequently releasing 'positive' news and concealing top executives reducing their holdings, with CEO and vice-chairman secretly fleeing, leaving over 70,000 shareholders affected. Despite the stock's steep decline by approximately 73% in 3 months, nearing delisting risk, the company continues to release positive news. Recent events include the stock dropping and surging due to a change in major shareholders, drawing millions in funds before closing with a steep drop, prompting authorities to intervene. The vice-chairman resigning for 'personal reasons' and planning to reduce holdings added to the company's credibility crisis. The chairman denies any wrongdoing, stressing significant financial support provided by himself and family to help the company survive and vowing to protect its listing status through judicial restructuring for a fresh start.
Source: YAHOO