Chinese property developer Evergrande Real Estate is considering buying back shares, according to a Chinese news report.
Citron, an international professional short seller company, published a report with a very sensational conclusion on June 21: Evergrande Real Estate Group Limited, China's largest real estate company listed in Hong Kong stock market, is insolvent and has been reporting false information to investors in the past.
According to the publicly available information, Citron was founded in 2007 and there was only one full-time employee, Andrew Lefort. His profession was shorting in the overseas-listed Chinese firms. The most well known event in China was 4 times of fruitless attacks on Qihoo started in last year.
Shares in Evergrande fell Thursday after the report from Los Angeles-based short-seller Citron Research circulated in the market. That report alleged accounting irregularities at the company. A summary of the research report is publicly available on Citron's web site.
A source said that CEO Xia Haijun and chief financial officer Parry Tse told participants in an investor call that the company is looking at a share buyback, according to a participant in the call, organized by Credit Suisse.
The company did not say when it would buy back shares or how much it would spend, the source said.
