HONG KONG May 31 Shares in Chinese e-commerce
platform Cogobuy Group fell over 20 percent on
Wednesday, its first day of trade after the stock was suspended
last week following a critical research report that accused it
of improper accounting.
Blazing Research, a little-known research firm whose
analysts were not identified, first issued a report last week
accusing Cogobuy of improper accounting practices and saying
that its platform, which sells electronic components, has
Cogobuy late on Monday rejected the report, saying the
allegations were false and misleading. It said Blazing Research
had not sought comment from the company.
It added that it had reported the incident to the Shenzhen
police and reserved all rights to take legal action against the
authors of the report.
Blazing Research issued an additional report on Tuesday,
rejecting Cogobuy's rebuttal.
After initial gains, shares in Cogobuy plunged 26.3 percent
to HK$5.75 on Wednesday to their lowest since Aug. 25, 2015.
Since the report was first published, Cogobuy has lost over 40
percent of its value.
(Reporting by Donny Kwok; Editing by Clara Ferreira-Marques and