October 19, 2021
Markets

Evergrande’s potential debt blowup is ‘not a contagion’ event for the stock market, says the man who said the firm was insolvent 10 years ago

Citron Research founder Andrew Left was feeling a modicum of vindication on Monday, as China’s Evergrande looked to be on the brink of collapse, sending shock waves through financial markets.

“Yeah, I feel vindicated,” he told MarketWatch, in a phone interview on Monday.

Back in 2012, Left accused the prominent property developer of engaging in aggressive accounting practices and charged that it was actually insolvent, based on his research.

Read: Evergrande isn’t the only reason the stock market is headed for its worst day in 2 months. Here are 5 other reasons

Left said that China’s second-largest property developer’s balance sheet hasn’t changed very much since his original analysis of its problems, aside from the scale of the issues.

“Nothing has changed in the 10 years since that research … I just identified when the…

Read full article here: www.marketwatch.com