The share price of Ehang, which has been attracting attention as a Chinese urban air transport vehicle (UAM) technology company, plunged more than 60%. As a report appeared that the stock price was inflated by technology manipulation and fake contracts.
On the 16th (local time) in the US NASDAQ market, Lee Hang ended the deal at 46.30 dollars, down 77.79 dollars (62.69%) per week from the previous day. Lee Hang also recorded the highest price on the 12th (local time), soaring to $129.80 during the intraday market. This year alone, it surged 487.8%.
However, the stock price plummeted on the same day as a short selling report was released stating that Lee Hang raised the stock price through technology manipulation.
Wolfpack Research, a global investment information company, released a report titled’EHang: A Stock Promotion Destined to Crash and Burn’ and pointed out that Lee Hang’s major contract was fake.
According to the report, a company called Kunxiang in Shanghai, China, which first signed a contract with Lee Hang, is in fact an impatient company to sign the contract. Wolfpack Research said that two out of three addresses in Kunxiang in Shanghai were fake. The address on the Kunxiang website was a hotel not related to Kunxiang, and was also the address on the 13th floor of an 11-story building.
Wolfpack Research also visited the Lihang headquarters in Guangzhou, China. However, it is an explanation that it was poorly matched. It is explained that the basic lines and facilities for producing drone taxis were lacking. He even pointed out that there was little security system in place, with only one security guard guarding the building in a place full of technology used in the manufacturing process and design. In addition, the design and test center pointed out that there was only a large space for helicopters to take off and land.
The problem is that Lee Hang is the 9th most stocked stock of Seohak ants among US stocks. According to Savero of the Korea Securities Depository, as of the previous day, Seohak ants bought Lee Hang worth 5494.8 billion dollars (6051 billion won).
If the suspicions raised by Wolfpack Research turn out to be true, the share price decline is inevitable. Wolfpack Research is a place that raised suspicions that iQiyi, called the Chinese version of Netflix, inflated users and sales. Wolfpack Research’s report led to an investigation by the US Securities and Exchange Commission (SEC).
Reporter Lee Song-ryul [email protected]
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