On November 21, Carson International announced that the company's shares had been temporarily suspended from the stock exchange of Hong Kong Limited at 11:44 a.m. on November 21, 2019, pending a Clarification Announcement in response to a report that the company believed contained false and misleading information about the company.
Carson international suspended trading in Hong Kong today, plunging 90% before the suspension. Blue orca, a short selling agency, issued a report saying that the chairman of Carson international and his family cheated investors into ransacking listed companies by artificially understating the income and profits of the sale business.
A company that falsely reported capital expenditure and allowed the chairman's family to take away the most valuable business of the listed entity is completely unworthy of investment, the agency said. Carson international, ostensibly a manufacturer of automotive leather and furniture, sold its best business to the daughters of its chairman three years ago, the agency said.
Blue Orca stressed that Kasen's share price has recently soared driven by the Cambodia project development announcement and the profitability of China's housing sales, but neither of them will provide much value to investors in the future.
Through the investigation, the agency found that Cambodia's investment may be just bluff. Investigators went to a Cambodian project claimed by the company for field investigation, but only found idle and undeveloped land, and were told by the local people that the land was owned by others.