6 ms·
Andrew Left banned from trading in HK for saying China Evergrande was insolvent
- baylearn 5y agoFull title (I shortened to 80 characters): Andrew Left Was Banned From Trading in Hong Kong for Saying China Evergrande Group Was Insolvent. Was He Right All Along? The real estate firm — which Left targeted in a 2012 short report — now faces a reckoning on its $300 billion in liabilities.
- baybal2 5y agoLiabilities of roughly $300B on the books only, but there is also their submarine debt which is said to be comparable to what they already have on the books, if not more. They also practiced Enron style liabilities as assets disguise, so their real total asset-to-liability ratio would be even lower.
- RegnisGnaw 5y agoHe’s lucky he did this in HK. If he was in mainland then he’d be found with “Picking quarrels and provoking trouble”
- poorjohnmacafee 5y agoYou are aware that the mainland's new HK security laws allow extraction out of HK for anyone who "threatens national security", i.e. goes against the CCP and their system. [1] [1] https://www.amnesty.org/en/latest/news/2020/07/hong-kong-national-security-law-10-things-you-need-to-know/ https://www.amnesty.org/en/latest/news/2020/07/hong-kong-nat...
- RegnisGnaw 5y agoThe HK NSL didn't exist in 2012 when the report was released.
- steve76 5y agoIt's now illegal to be wealthy in China. Their leadership only wants soldiers and factory workers. What they care about is not what you care about. Their power only cares about staying in power. International standing, or GDP or quality of life means nothing unless it keeps them in power. Even if they take over the world, they will still be hostile and violent. marx says there's a perpetual revolt. It's a forced brutal cynicism in the face of nice peaceful lives, like a teenager that refuses to grow up. Do not bail out anyone here in the USA who took their side, such as all the employees at Google who built weapons for them. Or Bill Gates, who built China nuclear infrastructure. Or the Democratic Party, specifically the daughter of slavers vice president who was filled with joy and rushed to proclaim our defeat at the hands of the marxists. Their bail out is not bolting the doors to their offices shut, and burning the place down with all those traitorous fools locked inside.
- TradingPlaces 5y agoHere's the deck that got him banned https://www.slideshare.net/dingli8888/citron-research https://www.slideshare.net/dingli8888/citron-research
- deleted 5y ago[deleted]
- ggambetta 5y agoWhat a twist it would be if Andrew Left goes from GameStop villain to prophetic Evergrande hero all within a year :)
- dreyfan 5y agoUnlikely. WSB and the like do not possess the necessary mentality to understand that a company may be overvalued. That’s why Left went long-only in the public eye (more accurately known as pump-and-dump though he didn’t explain step #2)
- lupire 5y agoHe was only a GameStop villain because people chose to prop up GameStop. Same as Evergrande, but different propper-uppers.
- sam0x17 5y agoSo in other words "Chinese authorities confirm Evergrande is insolvent"?
- beaunative 5y agoEvergrande has been in trouble for the past half year at least, it's astounding someone's only making a report now, everyone, I mean, EVERYONE, knows the chance of Evergrande would go insolvent is high.
- rapsey 5y agoThe report is from 2012!
- beaunative 5y agoJoke's on me then! Though I doubt anyone shorting can hold that position for this long.
- dustintrex 5y agoEchoes of the Wirecard scandal in Germany, where local regulator BaFin spent much more time suing critics than investigating the company: https://www.globalcapital.com/article/28mu9tpjsiu015o44foxt/people-and-markets/reckoning-begins-for-bafin-after-it-pursued-wirecard-foes-not-fraudsters https://www.globalcapital.com/article/28mu9tpjsiu015o44foxt/...
- htrp 5y agoFrom his call in 2012, the stock went up 10x before crashing all the way back down this year. As usual, being the short guy is a lonely career.... (and a reminder the market can stay irrational longer than you can stay solvent).
- tibbydudeza 5y agoEgo - Hui clearly felt he could emulate Jack Ma.
- dopamean 5y agoAm I reading this correctly... this is from 2012? It's incredible to me how long it takes for reports like this to be seen as true by the larger investor community.
- LorenPechtel 5y agoWell, duh! China has been propping up their economy to maintain an unsustainable growth rate. This is just the first *obvious* crack.
- naveen99 5y agoIf residential property was electronically tradable like stocks, we wouldn’t have insolvent real estate companies get so big as evergrande.