Why would a few anonymous, disparaged reports of fraud drive one of largest agricultural companies into a lengthy suspension of trading? No idea where Mr Kwok Ho would be but a high probability that when trading restarts, along with the release of earnings, shorts will be burnt.
Why? The time in suspension would be spent on a cash gathering exercise to reassure the auditors that cash is really there. Borrowing on the underground, moving cash around, producing 'books' showing revenues and calling on favors. Weak shorts will be burnt, good time for longs to exit, stronger shorts will survive.
Wouldn't surprise if the chairman conveniently disappears.
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