(Yicai Global) May 15 -- CK Hutchison Holdings has refuted a claim that the flagship Hong Kong conglomerate owned by billionaire Li Ka-Shing has inflated earnings and misled investors.
The firm strictly complies with Hong Kong Financial Reporting Standards, it said in a statement responding to a short-selling report from GMT Research. The report claimed that profits for the 2018 fiscal year may have been exaggerated by as much as 38 percent and it was hiding debts of around HKD57.7 billion (USD8.4 billion).
The Hong Kong-based accounting research firm advised investors to sell their shares though its share price [HKG:0001] was largely unchanged today, edging down 0.44 percent to close at HKD78.45 (USD9.99).
CK Hutchison "rejects any innuendo or suggestion of accounting irregularity," the statement read, adding that its financial statements and debts strictly comply with applicable standards in the special administrative region and the report "appears selective, biased and materially misleading."
The Hong Kong researcher has previously issued reports covering Chinese companies including JD.Com, Alibaba Group Holding, 58.Com, China Communications Construction and China Mengniu Dairy.
Editor: William Clegg