GOLDEN HEAVEN — CHINA’S POTEMKIN AMUSEMENT PARKS: Golden Heaven (NASDAQ: GDHG) down 28% on Hindenburg report – how much lower?

The basic business line: “Golden Heaven Group Holdings Ltd., an offshore holding company, engages in the development, construction, management, and operation of urban amusement parks, water parks, amusement projects, and amusement facilities in China. It operates six amusement parks, water parks, and complementary recreational facilities.” Now that may sound good. 6 facilities the size of DisneyWorld would be a pretty big group in fact. But they’re not – even in Golden Heaven’s own documentation they’re parks with capacities of 1,000 and 2,000 people at any one time. Universal Studios sized operations these just are not.

The Hindenburg allegations are here. They’ve checked the business levels at the parks and they seem to be nothing like what is claimed. And 6 pretty small parks don’t, we think, add up to $1.2 billion in market capitalisation anyway. But there’s more to it as well. The brokers who brought the IPO to market back in the spring all have, hmm, interesting track records, as do the auditors. The CEO and senior management have even more fruity and spicy business records and backgrounds.

I don’t know what this so-called “Hindenburg Research” is on about — Golden Heaven is doing boffo business:

The CCP has a long history of building enormous centrally-planned ghost cities, with lots of tall skyscrapers that are virtually or completely empty. But hey, all those imaginary people have to have somewhere to go for fun, right?