China Huishan Dairy shares plummet 85%, trade halted

Hong Kong

SHARES in China Huishan Dairy Holdings plunged 85 per cent on Friday, wiping off around US$4 billion of its market value before trading was halted in its second suspension in three months.

It was not immediately clear what triggered the slide. Barron's Asia quoted Huishan Dairy chairman Yang Kai as saying the share fall was the result of a short- seller attack. The firm has previously come under attack from US-based short-seller Muddy Waters.

Business website Caixin reported on Friday that the government of Liaoning, where Huishan Dairy is based, met 23 of the firm's creditor banks a day earlier, including HSBC, Bank of China, and I…