New | Fullshare suspended after plunging on share manipulation allegation

The report by Glaucus Research Group California alleged that the firm’s share price has been manipulated, with consistent unusual gains in the final hour of every trading since last November.

It also alleged insiders have used the “smokescreen of a rising stock price to secretly transfer some of the company’s most valuable assets to the chairman and his family”, besides manipulation of an investee’s shares to “artificially” inflate its own reported income.

The research firm, which said it has short sold Fullshare’s shares and may gain from its share decline, claimed Fullshare is “one of the largest stock manipulation schemes trading on any exchange anywhere in the world”.

It resembles Hong Kong-listed Tech Pro Technology, Huishan Dairy and Hanergy Thin Film Power whose shares collapsed from 47 to 91 per cent within a few hours, it added.

Fullshare said in a stock exchange filing last night “[Glaucus’] report contains misleading statements and unfounded speculations” and it was preparing a response to the claims and to refute the attempt to undermine the confidence in its business and financial condition.