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  "docSlug": "c47ae4d76596",
  "documentTitle": "China Huishan Dairy Holdings (6863 HK)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2016-12-16 00:00:00",
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  "pageNumber": 44,
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  "slideType": "problem_statement",
  "function": "diagnose_problem",
  "density": "dense",
  "nDataPoints": 24,
  "notes": "The slide uses screenshots of a web-based data portal (CCASS) to demonstrate the increase in share holdings by brokers and custodians over time.",
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      "kind": "callout",
      "text": "We see that an increasing number of Huishan shares were moved into CCASS from September 2013 through August 2016.",
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      "text": "CCASS holdings: 41.49%",
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      "kind": "paragraph",
      "text": "Types of CCASS Participants are brokers, custodians, pledgees, clearing houses and Investor Participants (IPs). The CCASS IDs of brokers are prefixed \"B\". Broker participants may also be pledgees, and custodians may hold pledged stock.",
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      "text": "We believe that a substantial amount of Huishan’s shares are pledged to lenders. If we are correct, this presents a risk to long holders because the borrower(s) could have their positions liquidated in a disorderly fashion if they are unable to meet a margin call.",
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      "text": "We analyzed date from Hong Kong’s Central Clearing and Automated Settlement System (“CCASS”), which houses data for all settled trades on the Hong Kong Stock Exchange that indicate large numbers of Huishan shares have been pledged, most likely as collateral for personal loans.",
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      "text": "CCASS holdings on 2013-09-30 and 2014-08-19 tables showing breakdown of holdings by type of holder.",
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      "kind": "title",
      "text": "Large Probable Share Pledges Present Substantial Risk to Equity Holders",
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