Over the past few years, several Chinese concept stocks have exposed accounting scandals

Carlsen Block, the founder of Muddy Water and short investor Carson, recently said that if investors think it is time to buy the Chinese concept stocks in the US stock market, they are only joking about themselves.

Over the past few years, several Chinese concept stocks have exposed accounting scandals. "After 2013 years, investors seem to have forgotten the lessons of 2011 years," says Bullock. "More than two years ago, Bullock's report, which exposed the fraud of the fame, caused the company's share price to plummet and was delisted by the Toronto Stock Exchange.

Brock is currently in dispute with another Chinese company. In a 81-page report released on October 24, Muddy Waters accused the network of Qin of "massive fraud". The report argues that NetQin exaggerated revenue and market share data, and the company's shares are worthless.

NetQin denied the accusation and made a counterattack. Prior to the release of the report, NetQin's share price was 22.88 U.S. dollars, and the report fell to $8.80 on October 28. As of this Tuesday, NetQin's share price rebounded to 14.52 dollars.

The rally in NetQin's shares came as investors were returning to China's concept stocks. According to the IPO research company's Renaissance Capital, in 2013, 8 Chinese companies were listed in the United States, raising 800 million U.S. dollars, up 4 times times from 2012. Although there is still a big gap between the price of NetQin and the release of muddy water, it is clear that investors have regained enthusiasm for the company.

The Network Qin said the muddy water report contained "a large number of factual errors, false assumptions, and malicious representations of some events". The company hired law firm Shearman & Sterling to conduct an independent investigation with the assistance of Deloitte.

Braddock's criticism is in circles, in some cases profiting from flawed fraud allegations. In the process of the Net Qin stock price plunging, the Oberweis Asset Management company held the Net Qin shares increased by one times, reached about 1.8 million shares.

Jim Oberweis, the company's president, said: "These things take time and Jim Obovis have the opportunity to create panic." But ultimately, it's just a matter of success and failure, and I think the evidence is good for the long side. He says there are many flaws in the report on Muddy Waters.

NetQin is the second largest holder of Oberweis China Opportunity Fund. According to the fund's research firm Morningstar, the fund performed well in the same funds in 2013, with an annual return of 59.6% per cent.

At the end of December, NetQin shares rose. At that time, Morgan Stanley announced that it had acquired a 5.2% stake in NetQin.