(Yicai Global) July 9 -- California-based short seller Muddy Waters has released a second report against Chinese sportswear ANTA today.
This follow-up assault claims company insiders "undertook a series of transactions shortly after its IPO that convince us that ANTA insiders always intended to defraud outside investors, and enrich themselves at investors' expense. In 2008, insiders stripped the company of a valuable asset, its international brand retail business, and attempted to conceal this fact. Similar to how ANTA controls its distributors, the insiders utilized proxies," as a post on its website reads.
ANTA's shares[HK:2020] took a dive today as a result, falling 1.17 percent to HKD50.65 (USD6.49) at 11.05 a.m.
The stock price crashed 7.32 percent yesterday, after Muddy Waters also accused the firm of cheating on its fiscal data by controlling distributors to boost its margins.
Editor: Ben Armour