Evergrande Stock Weathers Short-selling Storm, Rises 3.02%
BEIJING, July 4, 2012 /PRNewswire-Asia/ — Sina Leju today issued a report further commenting on Evergrande real estate. Statements made by Citron Research, a rumored short-seller in the U.S.A., on Evergrande previously resulted in a substantial fluctuation in the stock price. After Evergrande successfully weathered the storm, the stock price stabilized and increased with each passing day. By the close of the market on July 4, the stock price of Evergrande had increased by 3.02%, closing at HKD 4.09.
Evergrande responded rapidly to statements made by Citron on June 21 by releasing a brief clarification announcement at 12:30 the same day. At 13:30, Hui Ka Yan, Chairman of the Board of Directors of Evergrande, convened a global investors’ telephone conference personally to establish an effective communication line with investors, and made responses to the concerns of the investors item by item. At 12:00 on June 22, Evergrande conducted the second round of its counterattack. Building on the brief clarification announcement made the previous day, Evergrande released a detailed clarification announcement, refuting Citron’s statements item by item, which, in the opinion of the outside world, was a powerful, rapid and effective action. Thus, the stock price of Evergrande started to increase steadily after falling on the first trading day due to the rumored short-selling.
Lai Lixin, Executive Director and Vice President of Evergrande, went to Hong Kong Police Force and reported a case with a lawyer on the morning of July 4.
According to some analysts, in recent years, short-sellers have disseminated information about Chinese enterprises for the purpose of making a huge profit on their investments. If there isn’t a crackdown on this sort of behavior, it could severely damage the reputations and interests of Eastern enterprises; severely disturb Hong Kong’s financial market order; and also damage the city’s position as an international financial center. Evergrande carried out its defense with the appropriate force, and will continue fighting to protect its good name.
SOURCE Sina Leju