Zhang Shidong, 18 May 2021
Zoy Home Furnishing, an exporter of sofas and furniture in Zhejiang province spurned by most securities analysts, has become the public face of China’s crackdown on financial malfeasance, offering the nation’s 186 million investors a peek into the underbelly of Asia’s largest capital market. The 1.4 billion yuan (US$218 million) company, based in Anji county, was named on May 16 by the China Securities Regulatory Commission (CSRC) as the subject of an investigation into pump-and-dump price manipulation based on a whistle-blower’s report.
The scam came to light when Ye Fei, a hedge fund manager working for Huaibei Yitian Investment, wrote on his Weibo microblog that he had been owed 50,000 yuan in commission promised by Zoy for helping to prop up the stock’s prices. The asset management units of several Chinese state-owned brokerages including Shenwan Hongyuan Group and Minsheng Securities were also involved, playing the warehousing role of locking up the stocks in their portfolio to facilitate the ramping of prices, Ye said. Continue reading “Article: Sofa exporter Zoy, named in pump-and-dump scam, exposes underbelly of China’s US$11 trillion stock market”
