Yurun Food is now in the crosshairs of Muddy Waters analysts. And the title collapses

There is a bogeyman roaming the Toronto and New York stock exchanges that now seems intent on turning its attention to Hong Kong as well. Just today, news came from the Asian financial center of an excellent victim: Yurun Food stock lost 19,84% in just a few hours, landing at HK$20,60. Compared to the highs of last November, it has lost almost 14 Hong Kong dollars.
Yurun is a well-known brand, one of the largest meat suppliers in mainland China, a leader in pork processing, based in Nanjing, Jiangsu province. According to its president, Zhu Ycai, there are no reasons that justify today's descent. The company has excellent investors, from the Chinese private equity group Hopu to the Singapore state Temasek, from Jp Morgan Asset Management to the Fidelity group. A rumor reported by the brokers of Mirae Asset Securities was enough to trigger the sales: Yurun would be the next target of Muddy Waters Research, a brand that scares even to pronounce it, but which until a few years ago was only an obscure research company of Hong Kong.
The fame of the company and its father-owner Carson Block came from controversial reports that massacred several Chinese companies, accused of having obtained successes on the stock market thanks to outright fraud and irregularities in the publication of balance sheet data. In practice - according to a reconstruction made by the Bloomberg agency in the first few days of June - Carson Block has begun to target above all the Chinese companies that landed on the North American lists thanks to reverse merger operations, which made it possible to easily pass some of the obligations that would mandatory in the case of a direct IPO. The first torpedo seems to have been the one launched last year on Orient Paper, the management of which, according to Carson Block, would have been "similar to those which in the 18th century made Catherine of Russia believe that her shipyards and her shipbuilding industry armaments were at the forefront of the world”. An arbitration recently reclassified the charges to Orient Paper, but other Chinese companies listed abroad have entered Muddy Waters' sights (not by chance "murky waters"...) (the first to be listed in Hong Kong is precisely the Yurun group).
Rino International Corp. and China MediaExpress Holdings have gotten into trouble and in the last three weeks also the forestry group Sino-Forest, listed in Toronto. Block's allegations caused five companies to lose well over $4 billion in market capitalization in a matter of weeks. The Sino-Forest case is still in the spotlight of the Toronto Stock Exchange authorities, accused by many of negligence. According to Muddy Waters' report, the forestry group would have made unfaithful declarations on revenues and also elaborated a sort of Ponzi scheme, the mechanism that came to the fore thanks to the Madoff case. The indictment speaks of "massive exaggerations of Sino-Forest's assets." In reality, nothing has been officially ascertained, but evidently enough to cause the stock to lose 85% in three weeks, putting a good number of excellent investors on the gridiron once again, first and foremost John Paulson, known for predicting the crisis of September 2008. So today there are those who are wondering how it is possible for irregularities to escape the supervisory bodies, but there are also those who are wondering why checks have not already been started on Muddy Waters, which is , yes, a research company, but it is also openly a short seller, i.e. a group that focuses on the stock market declines of some carefully selected stocks. On this side, little data emerges, except for the fact that Carson Block leads a very withdrawn life because he, he says, has already received several death threats.