China Taifeng Beddings listed on the Hong Kong exchange in June 2010. The first signs of trouble emerged in late 2013 when the company’s CEO and auditor resigned. Another warning sign was the loaning of surplus cash balances to supposedly independent third parties. Either management was siphoning cash out of the company or parking fake profits off-balance sheet. From early 2014 onwards, the company issued a series of profit warnings which prompted a collapse in its share price. In February 2015, Taifeng asked for its shares to be suspended pending a large acquisition; however, the next month the company announced that it was unable to publish FY14 results. The company never resumed trading as details of the fraud emerged.

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