Deadly Muddy Waters New Oriental Jedi counterattack malicious shorting

This reporter includes Beijing reported that the new Oriental shares in the opening Rose 34%.　　This is undoubtedly the Beijing time in the early hours of July 20, the most eye-catching news in the market. Mr Yu has finally responded openly to questions after the stock price halved after the SEC investigation and murky waters.　　Oversold triggered a super rebound, investors "bottom impulse" and overseas new Oriental students collective exerting force, finally pushed the share price back to 11 U.S. dollars, the whole day rose nearly 18%. A friend asked me if I could buy new Oriental on the day of the crash. I said firmly buy, buy quickly, buy more!　　"New Oriental co-founder Xiaoping said. But an investment banker told the Huaxia Times Reporter: "This is prudent because a lot of buying is directed at ' pretty ' new Oriental and Mr Yu himself." After all, the SEC's investigation has not come out, the U.S. stock market from the problem to pick up the card one months can be done. Southeast intermediation and so on too many, investors still dare not take risks.　　"In the face of the plunge, Mr Yu said he counted the SEC, but not the muddy water company." "There are real problem companies in the stocks, but more are being wrongly killed by malicious shorting." A company that has been wrongly killed must take up the legal weapon in its hands and retaliate.　　"The British Securities Institute director Li Dahuan told our correspondent, in the face of possible malicious short, in the company can consider five steps to go, that is, once the attack, immediately temporary suspension, announced the announcement of clarification, buy back, report the supervision layer and alarm, big shareholder push positive." So panic, because muddy water companies long time large-scale short, let more and more stocks have been forced to gun, and are scarred.　　Behind this is a long chain of interests, including institutional investors, businesses, individuals, and even higher levels of interest.　　The nightmare of the companies in the middle of the gun, such as New Oriental, began with the shorting of muddy water in the US. Looking back on the muddy waters of this two-year short experience, it can be said that Tangwu, gun-gun lethal.　　Since the 2010 attack on Canada's Sino-Chinese forestry First-World War fame, up to now, it has "attacked" including the Oriental Paper, Green Connaught Technology, the media and other 8 Chinese concept stocks, almost all "attacks" have brought the target company's share price collapsed, and 5 companies have been delisted delisting. Among them, Dalian Green Connaught from being it "kill" to be on Nasdaq (Weibo) to pick a card, before and after only used 22 days.　　And Ka-han forestry has been its 40-page research report evaporation of 4 billion U.S. dollars in market capitalisation, 100 million dollars per page report, is more than precious words.　　And the muddy water company to do aerial stocks and its "good Brother" incense rafters. Although the incense rafters is only one person's "purse" company, but is claimed to be all kinds of short websites to create the longest, its short energy also can not be underestimated.　　Its attack has led to the southeast of the card delisting, and forced the privatization of the Thai-rich electric off the field. At the end of June this year, incense rafters and suddenly issued a short report to attack Evergrande Real estate, resulting in constant large stock prices two days evaporate 14%, but because of constant counterattack timely, quickly regain lost ground. In addition, it has been repeatedlyAssault on Qihoo 360.　　The short behavior of muddy water has changed the ecology of the global stock market, and investors ' confidence in the stocks has been wiped out in panic.　　So how bad is the middle-stock now? According to wind data statistics found that in the past year, in the United States market, 85% per cent of the shares in the decline, of which more than half of the 50% decline, including PetroChina, China Mobile (micro-blog), China Life and other countries, such as the decline in the head of more than 80%.　　Among the 233 statistical specimens, only 33 were worth more than 1 billion dollars, accounting for only 14%. "Down to now, in fact, many of the shares already have the value of investment."　　WB, the Asia Pacific president of the US Rand Capital Corporation, told reporters. Why fall to have the investment value but still want to continue to fall? Haiyan, vice president of Xiang Wang Investment Management Co., told reporters that this was because it was not accidental that Chinese companies were being shorted out. But she also said: "In the new Oriental itself, I have been optimistic, do not think it has any mishap." "In fact, when the shares of new Oriental fell to $9.5 a July 19, the market was filled with a voice:" Copy the new Oriental. Even Mr Yu admits that a lot of PE, funds and entrepreneurs around him said: "Want to buy some new Oriental."　　"What the hell are you doing?" "The muddy waters are ripe.　　"An investment banker, after watching the latest muddy water short of the new Oriental Research report, couldn't help saying. "Not to say how conclusive their evidence is, but to become more familiar with China's business rules," the investment banker explained. It's scary, because it's easy to influence American investors unfamiliar with China, while making it hard for Chinese companies to deal with its accusations. "Haiyan also analysis of reporters:" Short institutions are now turning to attack the institutional environment of Chinese enterprises. In the case of the new Oriental events, the US-listed mainland companies, mainly through the VIE architecture, are in fact contrary to China's regulatory regime, and its presence is detrimental to investors ' flaws, and the Alibaba incident has cast doubt on whether the structure can guarantee its interests, which is just what the muddy waters hold, To incite a shareholder's unease. "This reporter learned that the muddy water company's Mister Carson, in the University of the minor professional is Chinese." He has spent a lot of time studying China's B-shares and has been peddling "strong buy" reports to his father to the company. And into the "career to do aerial inventory" this line, it is because of a coincidence, in helping his father in the field to study the value of oriental paper is not worth the investment, in the East Paper factory saw a slump in the door and legendary millions of dollars in inventory-waste paper.　　Then, in a decisive decision not to vote for it, but more sensitive to find that this is a golden opportunity, then created the muddy Water company, and in 2010 issued a short report of Oriental paper.　　Since then, he has made air the company became his own business. "Muddy water will go to take the initiative to do research, careful verification, you look at its research report that heI did my homework, so I was bluffing. It was stronger than the rafters, and the study of the rafters was often coarse and arbitrary, closed behind closed doors and emotionally full. I heard that muddy water used to be a group of lawyers, accountants and experts in forestry, and ran several provinces and spent several months investigating. You really can't guard this kind of investment. and Muddy Waters understand the law, often in the report of the disclaimer to choose their own, so in a free market in the United States it is difficult to regulate it.　　The investment bankers said.　　And they hired the private investigator is the powerful, once had been short of the Chinese company boss said, until the company's shares were short, only to find that their opponents have long been diving into their company's factory, installed on the camera more than half a month, and I did not know. The World Hee-hee, all for the benefit.　　What are the muddy waters trying to do? After several successful shorting, the sniper process has been clear that foreign-funded research institutions are responsible for hiring people in China to investigate, gather intelligence, and then form a sing-empty report, behind which hedge funds borrow shares to build short positions, and when the report is issued, the share price plunges, and hedge funds buy a lower price and earn a difference.　　In this process, the relevant law firms, accounting firms and so on can be divided into a piece of soup. "There are also motives for shorting the Chinese economy behind the frequent aerial stocks of foreign institutions." In recent years, the voice of all kinds of singing air in the west, but all by the Chinese government effectively cracked. Generally short a country must have certain market conditions, but China's exchange rate, capital circulation by the government control, this channel they can not use, the current China's only short window is outside the foreign listed these Chinese enterprises, so they will make full use of this risk window to stir up trouble.　　"Haiyan points out. "Recently, China and the United States are competing for supervision of Chinese companies listed in the US," Haiyan analysis said. The US has asked China to open up data on listed companies in the United States to facilitate censorship, to extend regulatory authority to China and to reject it, and therefore does not rule out the use of these shorting bodies to pressure the Chinese side by doing air-funded companies. The current gloomy global economic situation makes it easier for short sellers to succeed.　　"While the rafters were short on the Hong Kong market, financial commentator Jianhao told reporters that this was a" strategic temptation "and that Hong Kong would be a springboard for future financial attacks against China by the US. It is clearly an indisputable fact that the National Bank has "financed" the fight against shorting in order to make the diners of the chain profit.　　Doing aerial stocks is shorting the Chinese economy, which is clearly not just speculation.　　At the very least, the news that the country has offered 1 billion of dollars to retaliate has made the plot soar. "Now is the best time to privatize good quality companies.　　Haiyan told reporters. Haiyan that many of the best Chinese companies are listed in overseas markets, but after a short round, the shares are now so low that the company should take the opportunity to recover the stakes in these outstanding companies in order to keep their proceeds in the countryWithin。 As Haiyan said, privatisation is now replacing IPOs as an important issue for China stocks in overseas capital markets.　　Data show that in the first half of 2012, only one Chinese company listed in the United States, while the United States to withdraw from the market as many as 19.　　July 11, on "The Bank of China to provide 1 billion U.S. dollars to help the stock in the United States," The news came out, and said that these companies after the withdrawal of the market, or may be in the Hong Kong stock Exchange or other market listing. This reporter to call the country opened the bank to verify, propaganda department staff said: "Still further confirmation."　　"And according to the announcement of companies such as Tai Fu Electric, ahead technology and so on, their delisting has indeed been" funded "by the State Bank. "If the information is confirmed, the country's actions can be said to be a powerful counterattack at the national level." This counterattack is good for protecting Chinese companies.　　Haiyan pointed out that the current U.S.-listed Sohu and Sina and other domestic internet giants should be considered at the strategic level of privatization, which for the country's information security, and to achieve capital gains remain at home, are beneficial. But these investment bankers still think the price is not small: "The fall in share prices, while saving the cost of privatization, still has a high financial lever to privatize, as well as the legal costs of US investors in class action and the SEC's regulatory costs, which are a huge expense. "Haiyan that the U.S. regulatory action is mainly in the authenticity of corporate data, as long as companies do not exist fraud and other acts, such regulation of enterprises will not have a large cost."　　But for the fraud facts can not be confirmed, you must provide evidence, and now the Sino-US regulatory framework agreement does not come out, without China's regulatory approval, the United States is not free to conduct on-site investigation of domestic enterprises.　　Reporter learned that, with the increase in the number of stock withdrawal, more and more PE has begun to rob food privatization this piece of cake. "The price-earnings ratio of the shares has fallen to 4 times times, and the domestic small and medium-sized enterprises in the bear market can reach 20 times times 30 times times, which is the interval of PE arbitrage." So even though privatization-delisting-the road to the domestic market is extremely risky, PE are also willing to try.　　The bankers said to reporters. Haiyan analysis said: "Own money buy back need a lot of money, the general PE can only 10% of the capital, so the country opened the shot is very exemplary." ”