Short-seller Carson Block has revealed his next target: furniture maker Man Wah Holdings.
Shares of the Hong Kong-listed company fell 10.3 percent shortly after after Block made that announcement at the Sohn Hong Kong Conference on Wednesday. Trading of Man Wah shares was subsequently halted by 2:40 p.m. HK/SIN.
Outlining the rationale behind his decision to short Man Wah, Block said the company has undisclosed debt, which means it is less likely to be profitable and generate much less cash flow than it says. Another point he raised is the company's alleged inconsistencies in taxes, which he claimed is an indicator of fraud.
Block, the founder and chief investment officer of Muddy Waters, also raised questions about the company's China sales growth story.
"Man Wah is an outlier in terms of profitability," said the short-seller, pointing out that the company's margins are higher than that of Apple's.
Speaking to the media after his presentation, Block said his next target company will be revealed in a few weeks. It will not be from China and Hong Kong, he said.
— CNBC's Vivian Kam contributed to this report.