"Re: Oh boy, Evergrande 0333.HK ( the largest Chinese developer) may be a zero."
And, the other view
HONG KONG (MarketWatch) -- Evergrande Real Estate Group Ltd.'s (HK:3333) (US:egrnf)shares moved higher on Friday, after dipping 4% in early action, with Credit Suisse reaffirming its "outperform" rating on the stock, following what it said was a "long discussion" with Evergrande's management earlier in the day. The talk took place against a backdrop of weakness in the Evergande's shares Thursday, which ended 11.6% lower after allegations of financial impropriety leveled by stock-commentary website Citron Research. In a note released Friday, Credit Suisse commented on six accounting issues raised by Citron, and indicated that it saw little merit in any of the points raised. The research house advised investors to accumulate Evergrande's shares on weakness, and kept its price target unchanged at HK$5.40 (70 U.S. cents). "Although the negative impact on Evergrande may not go away in the near term, we believe the company's communication with investors, as well as the strong sales in June and July would help support the stock price," Credit Suisse said in the note. Evergrande's shares were up 2% at HK$4.05 in late morning trade Friday in Hong Kong, outperforming a 1% decline in the Hang Seng Index .
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