How things soured for Huishan Dairy

The Chinese dairy company was damaged by a cash crunch that saw HK$32.07 billion ($4.12 billion) wiped off its market capitalisation. FinanceAsia looks back at how problems for investors and bank lenders unfolded.

How things soured for Huishan Dairy

There was no shortage of buyers when Huishan Dairy raised $1.3 billion in a 2013 listing in Hong Kong. The IPO was multiple times oversubscribed, in part due to a halo effect from Cheng Yu-tung, an existing shareholder and a Hong Kong property tycoon. 

During the public offering marketing, its chairman Yang Kai vowed to build China’s most trusted dairy brand after a 2008 baby formula scandal in China raised public fears over the...

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