Lin Yu, CEO of NQ Mobile Inc Photo: CFP

NQ Mobile Inc, a Chinese mobile Internet security provider listed on the New York Stock Exchange (NYSE), has filed a lawsuit against US short-selling firm Muddy Waters Research, after the latter claimed in a report that the Chinese company exaggerated revenues and market share, NQ Mobile's CEO Lin Yu said Tuesday.

Lin also called for US-listed Chinese companies to jointly launch an "anti-Muddy Waters alliance" to resolve difficulties triggered by Muddy Waters' reports, according to an online interview on xueqiu.com, a communication platform for investors.

The American firm has issued similar reports in the past about Chinese companies.

Shares of NQ Mobile continued to fall by 17.22 percent on Monday trading. Its stock prices have plummeted by over 60 percent since Muddy Waters released the short-selling report on Thursday alleging the Chinese company is a massive fraud.

"We've already brought a lawsuit against Muddy Waters at a court in Beijing," Li said without specifying details, and noted that the company is also mulling suing the US short-selling firm in Hong Kong and the US.

Refuting Muddy Waters' allegations that NQ Mobile's real market share in China is only about 1.5 percent and 72 percent of its purported 2012 China security revenue is fictitious, Lin claimed that the average number of his company's monthly active users was 120 million in the second quarter, and its registered users are mainly scattered in Guangdong, Jiangsu, Zhejiang and Henan provinces.

NQ Mobile's third-quarter revenue is expected to surpass $51 million, up from $41.4 million in the previous quarter, according to Lin. The company is scheduled to release its third-quarter financial report on November 12.

Several US-listed Chinese companies including water treatment manufacturer RINO International Corp and advertising firm China MediaExpress Holdings were forced to delist from the NASDAQ after Muddy Waters published similar short-selling reports targeting them in the past few years.

"NQ Mobile will never quit," Lin said, in response to an Internet user's question about whether NQ Mobile will delist from the NYSE.