By Simon Montlake, Forbes Staff Just when you thought short-sellers had tired of Chinese stocks, another one strikes. This time the target is Hong Kong-listed China Metal Recycling (CMR), which suspended share trading Tuesday after U.S.-based Glaucus Research Group, issued a critical dissection of CMR‘s accounts. The company denied the report, calling it “wholly unfounded”, and the shares remained on hold Wednesday pending further clarification. A spokesperson for CMR said that the company was  preparing its statement for Hong Kong‘s exchange. CMR‘s stock last traded early Tuesday at HK$9.43. Last September it dipped below HK$6.00, before a strong rally that outpaced the index. That run-up boosted the fortune of cofounder and chairman Chun Chi-Wai, whose net worth is estimated by FORBES CHINA, a licensed partner, at $550 million. According to Glaucus, the stock is worth precisely zero. Nada. Zilch. Should the stock follow that trajectory, Glaucus stands to profit, as it freely admits in its disclaimer. But, it adds, that doesn’t mean its research can be dismissed out of hand. “Just because we are biased does not mean that we are wrong.”
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