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.
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…