Chinese consumer finance company Chong Sing listed on the Hong Kong Exchange in November 2010. It was initially targeted by short-seller Anonymous Analytics with two reports between December 2016 and May 2017 alleging undisclosed related-party transactions designed to funnel money out of the company and/or inflate earnings. The report had little impact on the company's share price. In July and August 2018, the company started to report deteriorating financial performance which prompted a halving of its share price. In September 2018, it was then targeted by short-seller Bonitas Research with additional allegations of fraud. Although the report appeared to have little immediate impact, Chong Song's share price continued to fall and by the end of 2018 was 85% below its mid-2017 peak. In March 2019, the company's chairman resigned and then, in July, Chong Sing suspended trading citing issues related to misconduct of its wholly owned online payments unit UCF Pay. Despite dismal financial and share price performance, the fraud allegations remain unproven in that its auditor continued to sign-off on its financials and there were no subsequent regulatory prosecutions.

Last updated April 2022

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