China Metal Recycling Plunges as CFO Wong Resigns

China Metal Recycling Holdings Ltd., the country’s largest recycler of scrap metal by sales, plunged in Hong Kong trading as Chief Financial Officer Wong Hok-leung resigned after saying he was denied information.

The shares fell 24 percent, the most since the stock debut in June, to close at HK$8.57. It earlier fell as much as 45 percent.

“Mr. Wong stated in his notice that the reasons for his resignation were that the Board had failed to address his concerns or provide clarification on certain issues and that he had been denied proper access to the financial information of the company,” China Metal said in its statement to the Hong Kong exchange. The company denied Wong’s contentions.

The Guangzhou-based company had raised HK$1.55 billion ($200 million) in June in what was then Hong Kong’s second- biggest initial public offering for the year. The dispute today follows on the heels of accusations against Hong Kong-listed China Zhongwang Holdings Ltd. about the accuracy of its customer list in its prospectuses this year.

“The market is very sensitive to these kind of corporate governance issues nowadays so the stock just smashed to the floor,” said Castor Pang, a Hong Kong-based research director at Cinda International Holdings Ltd.

Wong, 56, joined China Metal Recycling in May 2008 and was also the deputy chief executive officer, according to the company’s listing document. He was formerly group head of financial control and business development at Sun Hung Kai Properties Ltd. from 2002 to 2008, the document said.

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