Daniel David, chief investment officer at FG Alpha and co-founder of research outfit GeoInvesting, said Fullshare was still holding shares pledged by the buyer of two property projects even though it claimed to have already received payment for the companies last year.

“As of May 2017, according to the British Virgin Islands filings, the pledge was not released,” he told the South China Morning Post in an interview on Thursday.

David said his hedge fund, based in Skippack, Pennsylvania, had a bearish stock position in Fullshare.

FG Alpha said in a report published on May 30 that the British Virgin Islands filing raised questions whether the buyer, Sun Field Property Holdings, “ever actually paid Fullshare” for the two companies.

They include Active Mind, which owns 90 per cent of a residential-commercial property project in Shenyang, Liaoning province, and Advance Goal, which owns 90 per cent of a property project in Xiaogan, Hubei province.

“If Sun Field did not pay Fullshare [for the two firms], it theoretically means Fullshare issued shares to Zall Group for free,” the FG Alpha report said. “We suspect the final beneficial owner of Sun Field … is a person or persons close to Zall or Fullshare.”

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