China Huishan Dairy Holdings Co. (HKSE - 6863.HK) - Debt Bubble Sank The Ship

A treasury head went missing, mysterious 85% stock price plunge, half of its board members resigned and a tycoon chairman's wealth gone with the winds within 1.5 hours. 

The company crisis has exposed a gigantic debt overhang looming over corporate China.

For more details, click the below link :
How the debt bubble burst for China’s Huishan Dairy

On 24 March, the share sank by a record of 85% before it halted trading. 
 

The sudden crash wiped out about $4.1 billion in market value.  A record 779 million shares in the Shenyang-based company changed hands,
the most on Hong Kong’s exchange.

In December 2016, Muddy Waters alleged that Huishan had been overstating its spending on its cow farms by as much as 1.6 billion yuan to "support the company's income statement."

The report also alleged that the company made an unannounced transfer of a subsidiary that owned at least four cow farms to an undisclosed related party and Muddy Waters concluded that Chairman Yang controls the subsidiary and farms.


More details, click the below link :
Huishan Dairy, Muddy Waters Target, Sinks 85% in Hong Kong

On 16 December 2016, the share dropped as much as 4.3% to HK$2.69 before being suspended in Hong Kong, which the Shenyang-based company said was pending a clarification announcement on the report.

It happened after short seller Carson Block's Muddy Waters Capital LLC said the company is "worth close to zero" and questioned its profitability in a report.

Detailed news, click the below link :
Muddy Waters Shorts Top China Dairy Farm as Shares Halted

Here is the daily chart of China Huishan Dairy.

When the share resume its trading on 19 Dec 2016, the price rebounded and broke all S-Trader Trend Tracker resistance on 30 Dec 2016. However, the price break out associated with low volume as noted on S-Trader Volumetric. A possible weak break out action and an early warning alert to shareholders and investors.

Few days before the share plunge, the price move higher on an increasing volume between 15 to 17 March 2017, A very high volume transacted (recorded by S-Trader Volumteric) but the price action failed to break out its side way range. Another possible sign of weakness and warning alert.

Thereafter, is history.

Here is the final price action chart after the share been suspended until now.

Source :
1) Metastock
2) www.bloomberg.com
3) www.scmp.com