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Bonitas Shorts Chong Sing

Activist investment manager Bonitas Research has announced a short call against Chong Sing Holdings Fintech Group Limited, claiming that the equity "will ultimately be worth zero". Its research note says "We believe that Chong Sing has nefariously been used by its director and largest shareholder, Mr. Zhang Zhenxin, to conduct sham transactions and artificially inflate Chong Sing’s reported financial performance to attract investments from unsuspecting creditors and minority shareholders." To support its claim, Bonitas says that Chong Sing had only RMB 1billion in liquid assets, and RMB 3.7bn of current debt and payments due, leaving the firm unable to meet its short-term liabilities....