In the case of Evergrande, Citron contends that its liquidity is illusory and that the firm has cooked its books.
FORBES: Chinese Property Developer Evergrande Slumps After Website Claims Fraud
Guangzhou-based Evergrande Real Estate Group rose 16%, one of many developers that outpaced a 5.6% gain in Hong Kong's Hang Seng Index.
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After a bumpy ride last year for Chinese real-estate stocks, Evergrande has been among those back in favour this year among offshore investors.
FORBES: Chinese Property Developer Evergrande Slumps After Website Claims Fraud
Guangzhou is owned by Xu Jiayin, chairman of the Evergrande Real Estate Group, while Shanghai's chairman Zhu Jun heads online gaming company The Nine City.
Italy's World Cup-winning coach Marcello Lippi is now in charge at Guangzhou Evergrande, an ambitious club who in the last year have signed Argentine Dario Conca and Paraguay's Lucas Barrios.
Hong Kong-listed Evergrande Real Estate Group surged 5.8 percent.
Italy's 2006 World Cup-winning coach Marcello Lippi was recently appointed at Guangzhou Evergrande, an ambitious club which has splashed out on South American players Dario Conca of Argentina and Paraguay's Lucas Barrios.
Citron says on its website that its principals may also be trading in the securities that it researches, which means that it likely shorted Evergrande ahead of the release of its report.
FORBES: Chinese Property Developer Evergrande Slumps After Website Claims Fraud
Left, the founder of the Los Angeles-based research firm told CNBC, it was the degree awarded to Evergrande Chairman Dr. Hui Ka Yan that sparked its investigation of the firm three months ago.
Evergrande spokesman Jimmy Fong says his company, which has 112 property projects in 62 cities, chose to raise dollars rather than yuan because it already had approval from the Ministry of Commerce to bring dollars into China.
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