Research on the Strategies of Chinese Concept Stocks to Deal with the Short-selling Crisis - Taking Muddy Waters' Short-selling of Anta Sports as an Example

Abstract

This paper takes the 2019 Muddy Waters' short-selling of Anta Sports as an example to study the strategies of Chinese concept stocks to deal with the short-selling crisis. Muddy Waters accused Anta of manipulating finances by controlling distributors, causing the stock price to fall by 7.32% in the short term. Anta quickly denied the accusation, issued a clarification announcement and warned of legal action. The next day, the stock price only fell slightly by 0.2%, showing the market's recognition of its response. The study analyzes Anta's information disclosure, public relations management and legal strategies, revealing the key role of rapid and transparent crisis response in stabilizing investor confidence and stock prices. Combined with the Anta case, this paper proposes that Chinese concept stocks should strengthen information transparency, establish a crisis warning mechanism and optimize investor relations to effectively deal with the short-selling crisis. The study provides a practical reference for the crisis management of Chinese concept stocks and emphasizes the importance of corporate governance and market communication.