Following news that Zhongwang, a PRC aluminium producer, will clarify its earlier denial of wrongdoing in its offering document, sponsors’ lawyers in Hong Kong have started to worry about the transparency of issuers once more.
When IFLR spoke to an in-house counsel about the Zhongwang case, he gave his views on what sponsors should do when they suspect a listing company could be falsifying information:
“I recently ran a due diligence on a Chinese company wishing to list. It claimed to us to be one of the largest metal processors in the country. But when we visited the factory in China, none of the workers were busy."
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