The trading of shares of construction and property management company Hsin Chong were halted last week after it become public that its non- executive chairman Lin Zhuo Yan had been accused of acquiring two properties at purportedly inflated prices, one worth HKD4 billion and the other HKD5.9 billion.
The properties are located at Tieling and Foshan, mainland China. According to Anonymous Analytics, former Hsin Chong chief executive Wilfred Wong (who is currently Sands China president) reportedly had a stake in the Tieling site that was sold to Hsin Chong.
Shorting agency Anonymous Analytics claimed in a report published yesterday that Hsin Chong non- executive chairman Lin Zhuo Yan was bringing problematic and non-revenue generating projects to the firm.
The shorting agency cited two major Hsin Chong deals since 2011, specifically its acquisition at purportedly inflated prices of two properties, one worth HK$4 billion and the other HK$5.9 billion. It said the vendors included Lin and his wife. Anonymous Analytics claimed the projects are either located at China’s “notorious ghost town” or have been sitting idle for years. It said the purchases have significantly burdened Hsin Chong and raised its debts to worrisome levels.
Hsin Chong trading of shares halted due to abuse claims