Skip to content
Shuli Ren

Adani Short Seller Has Opened a Pandora’s Box

The Hindenburg research is a wake-up call to global investors on India, and across emerging markets. How will they price in this risk?

Bloomberg business news
Did Hindenburg Open India's Pandora’s Box?

Fleeing from China’s incessant drama, global investors have been seeking the comfort of India, a fast-growing neighbor with a younger population and brighter prospects. But a high-profile short-seller report on Adani Group and Asia’s richest man rattled them. New York-based Hindenburg Research has opened a Pandora’s box on India — and, more broadly, on emerging markets, which have been seeing near-record inflows this year.

Hindenburg is not your ordinary research outlet. It is well respected in New York’s finance circles. Founder Nathan Anderson had worked with Harry Markopolos, the analyst who uncovered Bernie Madoff’s Ponzi scheme. Even activist hedge fund billionaire Bill Ackman voiced his support on Twitter, calling the bearish report “highly credible and extremely well researched.” So when Hindenburg describes the company’s dealings as the “largest con in corporate history,” US-based money managers will at least read the first few pages of its report.