You may have got a tree that has last years leaves on it..elm trees are suppose to drop there leaves every year like all deciduous trees.do not water heavy just moist watch for buds breaking in 2 weeks.let them know what the tree is doing in case you have to get a replacement..hope this helps....john

They are a semi-reputible dealer, still the best way to buy a tree is from a nursery where you actually see it. Other than a few larger trees what most sell are large rooted cuttings with very little development at all. There are a few different varieties of 'Chinese Elm' on the market, most look the same, there are some (like some Oaks) which don't drop last years leaves until the new buds break. This could be what's happening, especially if it' was kept in a greenhouse or cold house over winter. I'd keep it just barely moist and watch for new buds before watering too much.

Bob

Thanks for your follow-up postings. It's now been nearly a month and new little green buds have appeared all over my new Chinese Elm. It appears that it is growing all new leaves to replace the old ones it dropped!