Evergrande accusations

Evergrande refutes comparison to Enron

Chinese property developer Evergrande yesterday defended itself against accusations from short-seller Citron Research that it is running a Ponzi scheme.
<div style="text-align: left;">
Hui Ka Yan, Evergrande's colourful chairman
</div>
<div style="text-align: left;"> Hui Ka Yan, Evergrande's colourful chairman </div>

Evergrande Real Estate, China’s second-biggest property developer by sales, denied yesterday that it has used “accounting tricks and bribes” to hide the fact that it is insolvent. Evergrande’s board made the statement to Hong Kong’s stock exchange in response to allegations made in a report published on Thursday by Citron Research, a short-seller.

The analysis, compiled over “several months”, was certainly damning. Citron described the company as a Ponzi scheme and alleged that “bribery, excessive spending and off-balance-sheet transactions are the foundation of Evergrande’s financials”, and even compared the company to Enron.

“Evergrande has misled investors and represents the worst of Chinese neo-capitalism, and therefore represents a...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222