A conference call convened by 21Vianet Group (VNET.NASDAQ) to assaugue investor worries only deepened concerns, resulting in an intensified selloff that had shares ending the day down 23%, Bloomberg reported. The day’s trading continued a record slump for 21Vianet, erasing RMB5.094 billion (USD$830 million) of market value. Investors blamed the investment exodus on vague, contradictory answers regarding company finances from the managment of the Beijing-based Internet data-center operator. 21Vianet is the latest Chinese tech company targeted by short sellers with allegations of fraud – in this case, Trinity Research Group.
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