Overview
Sumitomo Chemical Co., Ltd’s shares slipped 3.6% on Tuesday, closing at ¥494.1 after opening at ¥499 and reaching an intraday low of ¥491.3, well below the prior session’s close of ¥512.6.
Catalyst
The move was triggered by a short‑seller report released on 3 August by Gotham City Research. The report alleges that Sumitomo Pharma Co., Ltd, a listed subsidiary in which Sumitomo Chemical holds a controlling stake, misstated its fiscal 2025 financial statements by up to ¥165 billion (approximately $1.05 billion). The alleged manipulation involves receivables used to artificially inflate profit, and the report highlights a ¥48 billion dividend declared by a Swiss subsidiary in March 2026, just weeks before the fiscal year‑end.
Market Context
The broader Japanese equity market added to the pressure, with the Nikkei 225 index falling 0.6% on the day after a 1% decline on the preceding Monday.
Additional Information
The article notes that the content was generated with AI assistance and reviewed by an editor, and includes standard Reuters copyright notices.