Evergrande Shares Drop After Fraud and Bribery Allegations

Shares in Evergrande, which owns Chinese Super League Guangzhou Evergrande FC and is one of China’s largest property developers, have fallen this week.

The drop comes after a U.S. shortseller said the company is guilty of “fraud, bribery and reckless spending on football teams.”

Citron Research, based in LA, said in a report on its website that Evergrande has “abused the capital markets” and “represents the worst of Chinese neo-capitalism.” Evergrande’s shares closed at 11.4 percent on Thursday, having fallen by around 20 percent, and leaving the company with a market capitalisation of $(US)7.6 billion.

Evergrande is planning to build a Chinese soccer academy in partnership with Real Madrid.

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