(Adds details on allegations, quote, background)
HONG KONG Dec 13 Hong Kong-listed Credit China
FinTech Holdings halted trading after falling 5.3
percent on Tuesday following the publication of a report by
short seller research firm Anonymous Analytics alleging it has
The report alleges that Credit China, which is listed on
Hong Kong's Growth Enterprise Market (GEM), misled investors
over its purchase of a 35 percent stake in a Shanghai company
made earlier this year, which it said was an independent
third-party but which Anonymous says was in fact a related
"We believe that Credit China has misled investors by
engaging in a number of questionable or otherwise undisclosed
related-party transactions designed to funnel money out of the
company and/or inflate earnings," Anonymous Analytics said in
the report published via Twitter.
A spokeswoman for Credit China, which provides
internet-based financing and has a market capitalisation of
about $2 billion, declined to comment.
Anonymous also alleges that Credit China over-valued a
Shanghai property developer it purchased in 2013, and that
intraday trading patterns in the stock had been unusual.
"Accordingly, we think Credit China is just another company
with a share price value dictated more by end-of-day trading
manipulation than business fundamentals," the report says.
Hong Kong Securities and Futures Commission head of
enforcement Tom Atkinson said last month the regulator had
established a new team to investigate irregularities in the GEM
Anonymous Analytics, best known for its 2014 report on
Tianhe Chemicals Group Ltd, said it holds no direct or
indirect interest or position in the stocks it covers, but its
affiliates or clients may do.
(Reporting by Michelle Price; Editing by Stephen Coates)