(Yicai Global) Feb. 26 -- Lenovo Group's shares slumped today after Bucephalus Research Partnership said that the world's largest seller of personal computers inflated its earnings in the fiscal third quarter ended December.

Lenovo [HKG:0992] fell 5.7 percent to close at HKD5.10 (65 US cents), the lowest since December, after pulling back from a drop of almost 6.5 percent earlier in the day. The benchmark Hang Seng Index fell 0.7 percent.

"Just finished our latest report #Lenovo: Its starting to look like fraud," Hong Kong-based Bucephalus Research, an accounting research agency, tweeted this morning. "The 3q results had some very worrying signs and that was before the virus took hold. We will put the video up on Youtube tomorrow."

Beijing-based Lenovo has not commented on the accusation yet.

US short-seller Muddy Waters Research reposted Bucephalus Research's tweet.

In the quarter ended Dec. 31, Lenovo reported an 11 percent jump in net income to USD258 million from a year earlier, according to its earnings report published on Feb. 20. That was better than the average prediction of USD223 million by seven analysts, according to Refinitiv data.

Revenue rose to a record USD14.1 billion. The firm sold 17.9 million PCs, retaining its global top market share at 25 percent.

Editor: Emmi Laine