China’s Tianhe Is Accused Of Fraud

Anonymous Analytics, an offshoot of the hacking group Anonymous, has issued a research report claiming that China’s Tianhe Chemicals lied to investors when it launched its initial public offering in Hong Kong. Alleging that Tianhe’s listing is one of the biggest corporate frauds ever, the report argues that the company grossly overstated its sales to raise $650 million from investors this year. Based in northeast China, Tianhe produces basic chemicals and lubricant additives, according to its website. The Anonymous report led the Hong Kong Stock Exchange to suspend trading in Tianhe’s stock, despite a company statement denying the allegations. Earlier this year, trading in the Chinese polymer maker Lumena was suspended after an adverse report by Glaucus Research, a U.S.-based firm that short-sells stocks.