Clear. 45.2   F New York
AI-Powered News Summarizer
Top Stories

Joyy rejects short-seller fraud claim that sent its shares plunging

November 19, 2020. Summarized by summa-bot.

Carson Block, chief investment officer and co-founder of Muddy Waters Capital LLC, speaks during the Sohn Hong Kong Conference in Hong Kong, China, on Wednesday, June 7, 2017. Shares of??Man Wah Holdings Ltd.??sank in Hong Kong after Muddy Waters questioned the firm???s profitability. Photographer: Anthony Kwan/Bloomberg

Chinese social media platform Joyy on Thursday tried to fend off an attack by short-seller Muddy Waters, saying a report that sent its share price plunging was full of "errors, unsubstantiated statements, and misleading conclusions."

Hong Kong (CNN Business)Chinese social media platform Joyy on Thursday tried to fend off an attack by short-seller Muddy Waters, saying a report that sent its share price plunging was full of "errors, unsubstantiated statements, and misleading conclusions. "

Shares in Joyy (YY) closed down more than 26% in New York on Wednesday after Muddy Waters published its report accusing the company of making up revenues and labeling the business "a multibillion-dollar fraud. " The shares recovered some of those losses in after hours trading and were up 16% premarket on Thursday.

"Muddy Waters' report shows its lack of a basic understanding of the live streaming industry in China," Joyy said in a statement.

The short seller estimates about "90% of the revenue that Joyy has reported from YY Live is fraudulent. " Revenues from Bigo, the company's international livestreaming platform, are 80% fraudulent, according to Block.

Summarizer is on Google News. Now you can get the latest AI summarized news on your favorite news platform.

Don't like Google News? We have an RSS Feed for you.

Suggestions