The Securities and Futures Commission (SFC) said it has commenced proceedings in the Market Misconduct Tribunal (MMT) against Andrew Left of Citron Research, alleging market misconduct involving the publication of a research report on Evergrande Real Estate (03333) in June 2012.
Left is the head of Citron Research, a US-based publisher of research reports on listed companies.
The SFC alleges that on 21 June 2012, Left published a report on Citron Research that contained false and misleading information about Evergrande.
The report stated, among other things, that Evergrande was insolvent and had consistently presented fraudulent information to the investing public. The share price of Evergrande fell sharply on the same day following the publication of the report.
The SFC also alleges that shortly before publishing the report, Left short sold 4.1 million shares of Evergrande which he subsequently bought back, making a notional profit of over HK$2.8 million. Left made a total realised profit of HK$1.7 million.
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