Shares in China Metal Recycling (HK:773) remain suspended today pending the company's response to allegations of fraud by a short seller. There have been several allegations of fraud against PRC companies in the past and this is the not the first time I have found myself invested in a company involved in controversy (not necessarily fraud). The most recent example was China Gas (HK:389) which I still hold and which is currently my largest single stock investment by some margin and a hugely profitable one.
CMR is audited by Deloitte Touche Tohmatsu. According to AA Stocks, UBS had a buy recommendation with a $15.20 price target last week and HSBC has reiterated a buy recommendation today (i.e. after the allegations) with a price target of HK$13.00. If I have been wrong about CMR, I am in good company.
CMR has denied the short seller's allegations and promised to clarify shortly. In the mean time, there isn't much I can do until the suspension is lifted. When it is lifted, I would expect there to be a meaningful drop from the pre-suspension price of HK$9.43.