The agency plans to pay a fee to an audit firm

"It is necessary and reasonable for the Independent Commission to assess the credibility of the investigation through qualified stakeholders," the director of the Network Qin said in an open letter. ”

This is an unusual practice for Muddy Waters, which has been reporting on Chinese companies, claiming to have uncovered fraudulent practices. Muddy Waters have been short of several Chinese companies and won, including the Sino-Forest, the company has filed for bankruptcy protection.

Muddy Waters previously released a report that the Network Qin manipulated a major scam. "At least 72% of China's security services revenue in the 2012 was fictitious," the report said. So far, the largest customer of the Network Qin is actually the Network Qin himself. The estimate we made after the study was that NetQin's share of the Chinese market was only about 1.5% per cent, rather than about 55% per cent of the company's own claim. We expect that the number of Chinese-paid users in the Qin dynasty is only less than 250,000, not 6 million people in the Network Qin. ”

NetQin subsequently denied the allegations of Muddy Waters, but its share price has fallen by more than 50% per cent since the October release of the report.

And now Muddy Waters, the agency will hire audit company Plante & Moran, the latter will be the Special Committee, Deloitte and law firm Shearman & Sterling investigation work.

Muddy Waters says the history of the independent Board of Directors of Chinese companies is questionable, and such committees often support corporate management. The muddy Waters referred specifically to the Independent commission of the Sino-Forestry Commission, which had claimed that the Sino-forestry industry was not engaged in fraudulent activities.

Other Chinese companies have hired independent consultants to investigate allegations of fraud, but the final results are positive. However, the shares of these companies also fell sharply.

"If the independent Commission accepts our proposal, investors will have a reasonable transparency, a process that is vital to protecting their own interests, and thus a great advantage," Bullock wrote. The results of the Independent commission's findings, if Plante & Moran are positively assessed, will be significantly more credible. ”

Muddy Waters This proposal will expire at midnight next January 7.