Hong Kong Lays Out Case Against Citron Research's Andrew Left
- Evergrande report was prompted by whistleblower, lawyers say
- Left may face markets ban and return profits from short sale
Andrew Left.
Photographer: Patrick T. Fallon/BloombergThis article is for subscribers only.
Hong Kong authorities started two weeks of hearings against U.S. short-seller Andrew Left by claiming he misled investors when he published a research report on a Chinese company.
Evergrande Real Estate Group Ltd.fell 20 percent on June 21, 2012, when Left released his note claiming that the company used accounting tricks “to mask” insolvency. Evergrande, based in Guangzhou, China, denied the claims and later filed a police report. Hong Kong’s Securities and Futures Commission is accusing Left of market misconduct by distributing false information about a company listed in the city’s market. Left’s lawyers denied the charges.