Sino-Forest Corporation operates as the largest forestry plantation company in China. The company sells standing timber or harvested logs from its plantation portfolio, including pine, Chinese fir, and eucalyptus. In addition, the company sells landscaping products to property developers. Sino-Forest is headquartered in the Greater Toronto Area (Canada).
The company has come under fire after a broker accused it of fraud in June 2011. The hedge fund Paulson & Co, which was the company’s largest investor, reportedly suffered a loss of up to $500M before deciding to sell its shares.
As of 2009, it had approximately 438,900 hectares of forestry plantations under management. The company was founded in 1994 and is based in Mississauga, Canada.
In 2009 China announced a 4 trillion yuan ($585 billion) stimulus package, aimed at providing an impetus to its domestic economy. As the largest timberland operator in China, Sino-Forest stood to benefit tremendously from the stimulus. The company received a special $1.5 billion low interest loan from the Chinese Development Bank to fund growth. 
Although China has emerged as a region of high growth and profitability, there remains considerable risk. Financial reporting standards are still not concrete, leaving room for skepticism. Rumors of fraud, even if ultimately proved untrue, may have a long-lasting negative impact on a company.