Hong Kong stocks ended Wednesday lower after hitting a fresh 23-month intraday high, with more listed companies in the city targetted by short-sellers. The Hang Seng index fell 0.1 percent, to 25,974.16, while the China Enterprises Index gained 0.1 percent, to 10,611.46 points. Shares of Man Wah Holdings slid as much as 15 percent after research firm Muddy Waters said it was shorting the stock, accusing the furniture maker of financial irregularities.
Carson Block, the founder of research firm Muddy Waters who also last year targeted China's Huishan Dairy Holdings , told a conference in Hong Kong Man Wah "had outsized profits" relative to their business model. Another Hong Kong-listed firm, Dali Foods Group fell more than 7 percent after US-based hedge fund GeoInvesting said it held a short position in the Chinese company.