China Hongqiao files court action to block negative research by Emerson Analytics
Aluminium maker China Hongqiao has filed a court injunction against Emerson Analytics to block circulation of negative research, including those reports previously published and any ‘further defamatory reports’
Shares of China Hongqiao, the nation’s largest aluminium smelter by capacity, gained for a sixth straight trading day on Monday, after it announced over the weekend that it is seeking a court order to block previously published as well as any future “defamatory” reports by Emerson Analytics.
China Hongqiao shares ended Monday’s session at HK$12.6, a gain of 0.64 per cent from its close on Friday.
Last week, shares of China Hongqiao rose by 77 per cent in resumed trade following a seven-month hiatus after the release of the first negative report by Emerson Analytics on February 28.
Some analysts believe a bullish Hong Kong equity market and an increasing inflow of capital from southbound investors is making short selling against Chinese companies increasingly difficult.
“The southbound investors are starting to win the fight for pricing power against foreign investors,” online stock research publication Gelonghui said on Sunday, citing the inflow of capital by mainland based institutional investors.
Several other companies that have been targeted by short sellers earlier this year have also rebounded vigorously.
