China Huishan Dairy Holdings Co. (0.6863.HK) sank by 85 percent in Hong Kong before the company halted trading, which is one of the biggest falls on the Hong Kong Stock Exchange.

The sudden crash wiped out around 4.1 billion U.S. dollars in market capitalization. Chairman Yang Kai said that he has no preparation for such big fall and he didn't make any explanation for the situation.

Muddy Waters Capital LLC also feels surprised by today's sell-off. This company was shorting Huishan Dairy twice in December last year and said the company was “worth close to zero". Huishan denied the allegations in the report and said it contained misrepresentations.

Email: zhanglingxiao@nbd.com.cn