The muddy waters are still in the air.

The United States shorting institutions muddy water (Muddy Waters) again do aerial stock, this time, he chose the NetQin (NQ. NYSE). Muddy water on the Network Qin financial data query, on the one hand make the Net Qin's share price fell, Monday fell to 17.22%, the Net Qin stock price plunge, also make the share price of shares suffered. Stocks closed in Monday, the Chinese stock index fell 3.64%, of which the dip fell 20.19%, the air network fell 18.44%, Sohu fell 16.35%, Phoenix New Media fell 14.93%, NetEase fell 10.28%.

U.S. local time 24th, shorting institutions Muddy Water released a 81-page research report on the Network Qin, "NetQin: China-style fraud 2.0". In the report, muddy water thought that the Network Qin important index false, is a huge scam. Muddy water pointed out that the Network Qin 2012 report on China's safe operating income of at least 72% of the data is fictitious. and the net Qin Xuan said customer Tianjin Yi da Tong, in fact by the Network Qin Executive control.

Muddy Water said, according to its estimate, the Net Qin in the Chinese market real market share only 1.5%, rather than net Qin Xuan said about 55%. As for the number of people paying for the money, Muddy Waters believes that the number of real-world pay is less than 250,000, rather than its claimed 6 million. Muddy water for the products of the NetQin also issued a question. Muddy water, said the Network Qin sold to consumers "Network Qin Security 7.0" antivirus software is actually not safe, more similar to spyware, the program in the loophole will make the user's mobile phone more vulnerable to network attacks. On the day of the Muddy Water Research report, NetQin shares plunged 47.16%.

"Only a good company will be seen by a shorting agency because it will not have a chance until it is short." In the media interview, NetQin CEO Lin Yu responded. He said that NetQin users include registered users, monthly active users and paid users three concepts, the report does not understand the registration, monthly active, pay concept. NetQin users in overseas and in China's ratio of 50%.

In any case, the fall in share prices has come to an end.

In recent years, muddy water has been a frequent target in the FMCN, New Oriental (EDU), the media (and so on) and other companies have not been spared.

Long, a fund manager at Beacon Asset Management Co., said in an interview with the first financial daily newspaper that Muddy Waters frequently released negative reports about Chinese companies, the main driving force or profit-taking. This type of company's usual profit model is to find a target for shorting, conduct detailed research to complete the report, and then use the associated funds to ambush short positions in advance, the final release of negative investigation reports, and so on after a sharp fall in the stock market lock profit.

"Muddy water is closely focused on the listed companies in China, of course, with the company's own shortcomings have a great relationship." "There are more problems in China, especially in the 2010-2011-year large-scale accounting scandal that has caused investors to collapse in confidence," said Tong. In addition to exaggerating revenue, falsely increasing profits and other naked financial fraud, listed companies information disclosure is not standardized, inaccurate, incomplete is also one of the factors that investors criticized. Of course, the market controversy caused by imperfect corporate governance structure is also one of the reasons for frequent shorting.

Insiders said that muddy water is China pass, on the stock is biased, but also tasted sweetness, but also touched the wall, such as Qihoo and the new Oriental. But in the final analysis, the real performance statement is kingly.

Previously, China-stock market was once the darling, most of the shares in the share price has doubled this year. Since the beginning of the year, the Kndi car industry. NASDAQ) rose 80.2%, Qihoo 360 (Qihu). NYSE) rose 175.85%, the only product will (VIPS. NASDAQ) Rose 259.59%. And recently listed Shang small loan (CCCR. NASDAQ), despite the embarrassment of a break on the first day of the IPO, surged 122.85% in the ensuing two days.

In the face of the bright performance of the stocks, industry insiders said that this year, a large share of the bull is a big background in China's economic slowdown led to cyclical industry profitability is poor, while the Internet as the representative of the overall profitability of the shares by the macro impact is small, the profit situation reflects the relatively cyclical industry obvious advantages, Superimposed on the lower valuations of the past two years of excessive adjustment, it eventually formed a partial bull market. Some analysts say the short of muddy water is a trigger that could lead to the end of the bull market.