SHANGHAI Shares in China
Metal Recycling (Holdings) Ltd. (CMR), which claims to be the
biggest scrap company in China, remained suspended for a fourth
day Jan. 31 as the company prepared a response to allegations
from a U.S.-based research company.
CMR asked Hong Kong Exchanges
& Clearing Ltd. (HKEx) to halt trading in its shares on
Jan. 28 after Glaucus Research Group California LLC published a
38-page report challenging CMRs account of the size and
scope of its business.
Trading in the companys
shares will remain suspended "until further notice," CMR
CMRs claim to be the
largest scrap metal recycling company in China was rejected in
the Glaucus report, which set a $0 target for CMR shares and
contained a "strong sell" recommendation. The Glaucus report
said that Chinese import data and other official information
cast doubt on CMRs claims for the scale of its
Glaucus, a California-based
investment research group, said it had shorted CMR shares in
advance of publishing its claims and stood to gain from
declines in the scrap companys share price.
The Chinese recycling company
said that it considered the Glaucus allegations "completely
inaccurate and wholly unfounded," and a spokeswoman told
AMM sister publication Metal Bulletin that
the company would reply to Glaucus claims next week.
CMR has since announced that it is preparing a
"detailed clarification announcement" with the aim of refuting
each of the "groundless" allegations in the Glaucus
A version of this article was first published by AMM sister
publication Metal Bulletin.