China Internet slides double digits with Muddy Waters 'still short'

|About: China Internet Nationwide ... (CIFS)|By:, SA News Editor

China Internet Nationwide Financial Services (CIFS -13.3%) is hitting a session low after Muddy Waters Research tweets "we're still short."

The firm is a "King Zero -- just another worthless China fraud," the short seller says in a report.

None of the company's purported business is real, Muddy Waters says, noting PRC financials show CIFS overstated 2016 revenue by a multiple of five.

The company's loans look like they're made to sham counterparties, the firm says, and even disclosed business with two related parties look like they're for fraudulent loans.

In a new tweet, Muddy Water links it to Longfin (LFIN +47.3%), noting the two share Network 1 Financial Securities as an underwriter (lead for Longfin, co-lead for CIFS).

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