China Metal Recycling
China Metal Recycling Limited was formerly the largest recycler of scrap metal in mainland China by revenue. Headquartered in Guangzhou, it was engaged in collecting and processing scrap steel, copper, and other metals. The company was wound up and delisted from the Hong Kong Stock Exchange after an accounting fraud scandal.
History
Founded in 2000, China Metal Recycling was listed on the Hong Kong Stock Exchange in June 2009, pricing its IPO at HK$5.15 per share. Its share price rose 24% on the first trading day to HK$6.44.In November 2009, the company's CFO, Wong Hok-leung, abruptly resigned, citing denial of access to key information. The share price plunged 24% in a single day following the announcement.
Fraud allegations and suspension
On 28 January 2013, trading of the company's shares was suspended after short-seller Glaucus Research published a report accusing the company of fabricating financial figures and overstating its import volume.Liquidation and delisting
In 2015, the Securities and Futures Commission (SFC) of Hong Kong petitioned the court to wind up the company in the public interest. The court found that China Metal Recycling had obtained its listing by fraud and ordered its winding up.On 4 February 2016, the Hong Kong Stock Exchange announced that the company would be delisted for "obtaining listing by fraud".