Trading in AAC Shares Halted in Hong Kong

Trading in the shares of  AAC Technologies Holdings--an Apple supplier--has been halted from 3:17 p.m 18 May, according to the Hong Kong stock exchange.

The stock last traded at $82.6, down 9.8%, on volume of over 28.16 million shares, on turnover of $2.414 billion.

The suspension comes after Gotham City Research, one of the top five short-sellers worldwide, claimed AAC used more than 20 undisclosed related parties to overstate its profits and to evade Apple’s labour standards.

AAC  has denied the short-seller’s accusation.

In a filing to the Hong Kong Stock Exchange following the accustation, AAC chairman Koh Boon Hwee, denied the “allegations in the report and considers the information contained therein to be inaccurate and misleading.” AAC is seeking legal advice on the matter, according to the Post.

AAC in March reported a net profit of RMB 4.03 billion in 2016, up 29.6% from the previous year and a net profit margin of 26%.The group was founded in Shenzhen in 1993.

 

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