Senior Lawyer Alleges 'Chinese Connection' Behind Hindenburg 's Damaging Report on Adani Group

Explosive Claim of Chinese Involvement in Hindenburg 's Attack on Adani

In a sensational development, senior lawyer Mahesh Jethmalani has made a startling allegation about a potential Chinese connection behind the damaging Hindenburg Research report on the Adani Group. The report, released in January 2023, led to a significant drop in the share prices of Adani Group companies, causing substantial financial harm to many Indian retail investors.

The 'Smoking Gun'

Jethmalani , in a lengthy post on the social media platform X, claimed that American businessman Mark Kingdon , the founder of Kingdon Capital Management LLC, had hired Hindenburg to prepare the report on the Adani Group. The senior lawyer described this as a "huge smoking gun" in the saga surrounding the short-selling of Adani shares.

The Chinese Angle

Jethmalani 's "smoking gun" is the revelation that Kingdon 's wife, Anla Cheng , is a Chinese-American with a significant shareholding in the Kingdon Master Fund. Cheng , according to Jethmalani , is a lobbyist for Chinese interests in the United States and was previously the CEO of SupChina, a pro-China media initiative that later morphed into an entity called The China Project.

"She was the CEO of #SupChina, a pro-China media corporate initiative which morphed into an entity called The China Project after a whistleblower accused SupChina of news subversion in China's interest in a sworn statement before the US Congress," Jethmalani wrote.

Undermining Indian Interests

Jethmalani suggested that the actions of Cheng and Kingdon were prompted by the Adani Group's perceived interference in Chinese strategic interests in several parts of the globe, including outbidding Chinese players for the Haifa Port in Israel and for coal projects near Sri Lanka's Jaffna.

"They 'made millions of dollars from their short selling; who eroded Adani market cap enormously, with no thought for several Indian retail investors who they financially decimated through their nefarious design to promote Chinese strategic interests by destroying an Indian corporate competitor who had prevailed in many bids over the Chinese State in strategic international projects," the senior lawyer alleged.

Kotak Mahindra's Alleged Role

Jethmalani also claimed that Kingdon approached Kotak 's international investment arm, Kotak Mahindra Investments Limited (KMIL), to set up an offshore fund and offshore accounts to trade in Adani shares. This led to the creation of the Kotak India Opportunity Fund (KIOF), which allegedly took short positions in Adani Group companies through the Mauritius route before the Hindenburg report was made public.

Unanswered Questions

Jethmalani posed several key questions, including: - Who introduced the Kingdon s to KMIL, and what due diligence was conducted by KMIL regarding the Kingdon s? - Did KMIL participate in the short-selling as a principal? - Did all the Indian people, organizations, and entities who helped Hindenburg know about the short-selling plan and whether they benefited from it? - Did these people and entities know about the alleged Chinese link?

Regulatory Scrutiny

The Securities and Exchange Board of India (SEBI) has already issued a show-cause notice to Hindenburg Research LLC, accusing the organization of "deliberately sensationalizing and distorting certain facts" in its report on the Adani Group. SEBI has also charged Kingdon entities for potential trading violations related to Adani Enterprises Ltd.

The senior lawyer's explosive claims have added a new layer of complexity to the ongoing saga, raising questions about the potential involvement of foreign interests and the role of Indian financial institutions in the events that unfolded. As the investigation continues, the spotlight remains firmly on the intricate web of connections and the broader implications for India's corporate landscape.