Case | HBS Case Collection | April 2013 (Revised March 2014)

Value Partners and the Evergrande Situation

by Paul Healy and Keith Chi-ho Wong


In June 2012, Cheah Cheng-Hye and his colleagues at Value Partners, a Hong-Kong-based investment firm, received a copy of a short-seller report alleging that Evergrande, one of China's largest property developers, was using fraudulent accounting and paying bribes to secure business. Evergrande's stock plummeted, and Value Partners, which had a sizable holding of Evergrande stock, had to determine how to respond to the allegations. The case provides an opportunity to review Value Partners' research approach to investing in Chinese companies and to assess the merits of the Evergrande allegations.

Keywords: asset management; financial analysis; value investing; China; Asset Management; Crime and Corruption; Financial Services Industry; China;


Healy, Paul, and Keith Chi-ho Wong. "Value Partners and the Evergrande Situation." Harvard Business School Case 113-113, April 2013. (Revised March 2014.)