HONG KONG, April 26 Shares of some firms tied to
Chinese property and healthcare group Fullshare Holdings
fell on Wednesday after short-seller Glaucus Research
claimed trading in shares of two companies was manipulated and
questioned their financial health, allegations that the firms
Shares of property and logistics services company Zall Group
Ltd, which holds a 3.45 percent stake in Fullshare,
fell more than 3 percent on Wednesday. Fullshare, in turn, holds
more than 8 percent of Zall Group.
Glaucus, in a report on Tuesday, had queried Fullshare's
stock trading patterns, its valuation and asset disposals.
The report said Fullshare was "one of the largest stock
manipulation schemes trading on any exchange anywhere in the
California-based Glaucus, which has shorted Fullshare, also
made allegations about Zall in the report.
Fullshare said in a statement to the Hong Kong stock
exchange late on Tuesday that the report was "misleading" and
that it would refute any attempt to undermine confidence in its
business and financial conditions.
Zall Group said in a separate statement on Wednesday that it
was not aware of any circumstance suggesting its stock price was
being manipulated as alleged by Glaucus, and an accusation that
it was "a deeply troubled company" was unfounded.
Fullshare's stock, which was suspended on Tuesday after it
plunged 11.9 percent, had surged nearly 800 percent in the 17
months to September last year. They then gave up a chunk of the
Shares of Huarong International Financial Holdings Ltd
fell as much as 4.5 percent early on Wednesday.
Huarong International Financial is owned 33 percent by China
Huarong International Holdings Ltd, which owns 13.4 percent of
China High Speed Transmission, whose top
shareholder is Fullshare, fell 0.7 percent after dropping as
much as 8 percent on Tuesday.
Shares of China Huarong Asset Management, which
dropped as much as 11 percent on Tuesday, were up more than 5
percent on Wednesday. Huarong Asset Management is the
second-largest shareholder in Fullshare.
(Reporting by Donny Kwok; Editing by Anne Marie Roantree and