Carson Block’s Muddy Waters LLC, a short seller, took aim at Anta Sports Products Ltd., becoming the third firm in little more than a year to question the financials of China’s most valuable sportswear company.
Mr. Block’s firm alleged that Anta fraudulently boosts its profit margins and its financials aren’t reliable. He said some of Anta’s sales distributors aren’t truly independent but instead are proxies for the company’s chairman. These distributors control as much as 80% of sales of Anta branded products, Mr. Block said.
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