Evergrande, a major Chinese real estate company, is accused of inflating its revenues by $78 billion, an amount that has been described as one of the worst frauds in history, surpassing those of Luckin Coffee and Enron. Founder Hui Ka Yan is now at the center of the scandal, which has been unfolding as the company has been fighting bankruptcy for years. This revelation has sparked comparisons to the Enron scandal, with some commentators suggesting that Evergrande's situation could have wider implications for the market, similar to the aftermath of Enron's collapse. Andrew Left of Citron Research, who had previously raised concerns about Evergrande's financial health, has been vindicated by these developments. The Chinese regulator's accusation, stating a figure of $80bn, has led to discussions about the broader practices of revenue inflation among companies from China to the US. Despite the magnitude of the fraud, the market's reaction has been relatively muted, with some analysts suggesting that the impact of Evergrande's fraudulent activities might not be fully appreciated yet.
From @Breakingviews: The Enron saga had consequences for other companies involved. Similarly, Evergrande’s advisers must be feeling uncomfortable now and investors would be mistaken in thinking the Evergrande story is all but over, says @AntonyMCurrie https://t.co/foulZ2PbYR https://t.co/VvSA06tNCA
From @Breakingviews: Markets ignoring a regulator accusing Evergrande of inflating sales by $78 billion is understandable, but the saga of defunct US power firm Enron is a reminder that blame rarely lies with just one company, explains @AntonyMCurrie https://t.co/8J4IWUrGjJ https://t.co/GUdOm0Qd7V
📺 China’s Enron moment: Markets largely ignored a regulator accusing Evergrande of inflating sales by $78 bln. It’s understandable - the property group is a mess. But the saga of the defunct US firm is a reminder that blame rarely sticks to just one company, says @AntonyMCurrie. https://t.co/lFdTclY1dD
Move over Madoff, Evergrande might have delivered the new king of fraud https://t.co/NlG6xyIcvE
$78 billion??? Now THAT'S an impressive fraud, even for China! https://t.co/582O5KWxdA
Breakingviews - China property’s Enron damp squib may yet surprise https://t.co/QzQBpFGymw https://t.co/QzQBpFGymw
From Breakingviews - Breakingviews - China property’s Enron damp squib may yet surprise https://t.co/1cCmfaxJF6 https://t.co/1cCmfaxJF6
No one was listening when we were saying #Evergrande financials were fake Now let’s see if they can do 2+2 and figure #Evergrande isn’t a bad 🍎 but what most of the companies out there are doing from #China to #US https://t.co/TQ9J7kHVzF
WHY WAS #EVERGRANDE FIGHTING BANKRUPTCY FOR YEARS⁉️ B/C THEIR EXECUTIVES WERE LYING ABOUT THE #PONZI FOR DECADES BY OVERESTIMATING THEIR REVENUE BY $78 BILLION‼️ (Just as we stated for 2+ years @metzler_dr) Founder Hui Ka Yan now stands at the center of one of the biggest… https://t.co/yk8XRBpx2J https://t.co/hOPlyeNnCA
FirstFT: Chinese regulator accuses Evergrande of inflating revenues by $80bn https://t.co/lKmE5HyJl0
I have said it before, but it bears repeating: Andrew Left @citronresearch was right after all. Evergrande's alleged $78 billion revenue fraud stands as one of the worst in history — dwarfing that of Luckin Coffee and Enron https://t.co/btC8wTs8oD via @markets
Evergrande's alleged $78 billion revenue fraud stands as one of the worst in history — dwarfing that of Luckin Coffee and Enron https://t.co/HO2KWsO0la via @markets https://t.co/VXDLozHdkc
Evergrande's alleged $78 billion revenue fraud stands as one of the worst in history — dwarfing that of Luckin Coffee and Enron https://t.co/Ga4uDGb6nT