Photo: Corbis

HONG KONG - Shares of China's biggest flavouring and fragrance company Huabao International Holdings Ltd were set to open down more than 17 percent on Friday as trading resumed, even after it denied allegations that it had reported false financial information.

In a statement to the Hong Kong stock exchange, Huabao denied it had overstated profit for 2010 and said transactions with its tobacco customers were genuine and it had legitimate sales invoices.

For statement click here.

Shares in the company were set to open down 17.09 percent at HK$3.30, their lowest since October 2008.