* 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
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)