The company’s shares surged when the Hong Kong session opened and are up around 17 percent by 10:00 a.m. HK/SIN. Man Wah halted trading of its shares at 2:30 p.m. HK/SIN on Wednesday after Block named the company as his next target.
Block, the founder and chief investment officer of Muddy Waters, said Man Wah has undisclosed debt and is less likely to be profitable. He also raised questions about the company’s alleged inconsistencies in taxes and China sales growth.
CNBC has sent an email to Muddy Waters seeking further comment.
In a nine-page stock exchange filing on Friday morning, Man Wah said the allegations are “groundless and contains various misrepresentations, malicious and false allegations and obvious factual errors about the Group.”