(June 2): Where will Carson Block strike next?

For traders in Hong Kong, it’s a suddenly pressing question. Block, the short-selling founder of Muddy Waters, told Bloomberg News he identified a new target in the former British colony and will reveal the company’s name at the Sohn Hong Kong Conference just after 2 p.m. local time on Wednesday.

His comments triggered an immediate flurry of speculation in the city’s US$4.6 trillion ($6.4 trillion) equity market. The Hang Seng Composite Index dipped as he spoke on television, with stocks including Tongda Group Holdings, Man Wah Holdings Ltd. and Sunny Optical Technology Group Co. sliding on concern they could be in the short seller’s crosshairs.

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