Vipshop Climbs After Calling Short Seller Allegations Unfounded
This article is for subscribers only.
Vipshop Holdings Ltd., a Chinese online fashion retailer, rose in New York after denying allegations from a short seller that it has manipulated its financial data, and said the report contains “key errors.”
American depositary receipts of Guangzhou, China-based Vipshop gained 3.4 percent to $26.66 on Wednesday. The ADRs lost 5.6 percent on Tuesday as Mithra Forensic Research in a post on investing website Seeking Alpha said “forensic models suggest that the firm has manipulated sales, receivables, profit and other asset accounts.” Mithra is betting against Vipshop shares and will profit from a decline in their price, it said.