Fullshare jumps 17 pct after it dismisses short-seller claims

* Glaucus Research accused co of stock manipulation

* Claims are "misleading and groundless": Fullshare

* Short-seller Dan David also says co's accounts are suspect

(Adds details of new short-seller in par 7, updates stock


HONG KONG, May 4 (Reuters) - Shares of Hong Kong-listed

property and healthcare group Fullshare Holdings Ltd

jumped as much as 17 percent on Thursday after it rejected

allegations by a U.S.-based shortseller about its financial


Shortseller Glaucus Research, in a report last week, had

queried Fullshare's stock trading patterns, its valuation and

asset disposals. The report said Fullshare was "one of the

largest stock manipulation schemes trading on any exchange

anywhere in the world".

Fullshare said in a statement to the Hong Kong stock

exchange late on Tuesday the allegations, which had caused its

shares to plunge last week, were "misleading and groundless" and

it was consulting legal advisers.

Shares of Fullshare surged as much as 16.7 percent early on

Thursday to HK$2.94, recouping all of the losses it incurred

following the Glaucus report. The stock was up nearly 15 percent

at the lunch break, outpacing a 0.5 percent drop for the

benchmark Hang SEng Index.

The company halted trading last week after its shares

plunged nearly 12 percent following Glaucus' allegations.

Glaucus said in another statement on Thursday that

Fullshare's response was totally inadequate and failed to

present any meaningful rebuttal to its allegations.

The company came under further scrutiny on Thursday when

short-seller Dan David of FG Alpha and GeoInvesting issued a

report saying Fullshare was "creating an accounting scheme

that's bound to eventually implode".

FG Alpha and GeoInvesting were wrapping up months of

on-the-ground due diligence when Glaucus issued its report,

David said, adding that he believed Fullshare "is a completely

uninvestable stock".

Fullshare could not immediately be reached to comment.

On Wednesday, Fullshare said in a separate statement that

China CITIC Bank Corp had agreed to provide it with

credit of not less than 10 billion yuan ($1.45 billion).

($1 = 6.8970 Chinese yuan renminbi)

(Reporting by Anne Marie Roantree; Editing by Stephen Coates)