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SINGAPORE, April 25 (Reuters) – Singapore's securities regulator has called for an independent review of the fraud allegations made by a short-seller against Best World International Ltd., which lost Wednesday 9 percent price of his action to the cosmetics company.
The shares of the closely-listed Singapore stock market have been halved since February, when local media questioned Best World's sales figures in China. The firm responded to the report by saying that his business was good.
"We expect the company that it calls for a full independent review of all issues raised in the report (short seller) so that shareholders have a complete picture and can make informed decisions," said in a statement. communicated the Singapore Exchange Regulation, the regulatory arm of the stock exchange. a statement late Wednesday.
"We expect to be consulted on the terms of reference for the review and will ask the reviewer to report directly to us, as well as to the company's audit committee. "said the head of regulation.
Reuters could not immediately reach Best World for comments.
On Wednesday, short-seller Bonitas Research questioned the company's accounting in a report called "Best World = Fraud", saying "its sales in China are only a fraction of what has been reported to shareholders. "
In February, Best World announced the appointment of an independent critic after the Singapore Times Business Times newspaper stated that it was difficult to understand where and how the company was selling a range of skincare products top of range in its key market, China.
At that time, the company had stated that it conducted all business areas in an ethical manner and in compliance with applicable accounting laws and standards, while being confident that its business and accounting practices would withstand scrutiny. thorough.
Trading in Best World shares stopped Wednesday morning. (Report by Aradhana Aravindan, edited by John Geddie and Christopher Cushing)
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