The United States to do more than 20 aerial units have formed a clear industrial chain

Once upon a time, the Chinese concept stocks, which tell beautiful stories, wear bright financial statements and have high growth space, are the brightest stars in the capital market, attracting a large influx of capital and stimulating the sensitive sense of smell of short sellers. Although the means of shorting the old, but can be a hit, such a scenario let the shares are rather embarrassing.

Short, that's the trick.

Since 2011, the United States has been short of muddy water and fragrance has become the market will not be overlooked name. Oriental paper, Green Connaught International, China's high-speed channel, a variety of global water, Ka-han forestry, Evergrande Real Estate, New Oriental and other companies have unfortunately in the gun, some of the stock price within a day, some of the discount is forced to simply retire. The charge is "financial fraud" and "false contract fraud investors." According to incomplete data statistics, in 2011, in addition to dozens of enterprises were forced to retire outside the city, there are nearly 40 shares in the share price fell to 1 U.S. dollars below. Not only that, some Chinese companies that were interested in listing in the U.S., such as China's car rental, Thunder also canceled or postponed an established IPO plan. In the first half of 2012, only 1 Chinese companies were listed in the United States.

Count the muddy water, the means of the fragrance is not difficult to find, the enterprise "financial fraud" questioning is the usual means of shorting people. The route to do aerial stock is also quite clear, tracking-confirming-orders-issuing reports-shorting.

"There's a cost to doing this, so I have to make money." "Muddy Water founder Cassen Block, who has worked in China for 10 years, said in a media interview. Brock said that Muddy Waters in China, about 50,000 people in the team to conduct research. After choosing a prey, it is often a choice to issue a detailed investigation report before the company reports, accusing the company of loopholes in its earnings. Because the short person in advance judged the share price will fall, they will first borrow the stock to sell from the market, when the stock falls, buys the same number of shares to return from the market.

Why do you prefer the stock?

Why do you prefer the stock? Andrew Lefort, founder of fragrance, says China has more liquidity than other emerging markets. This is why he "has more shorting opportunities in this market".

The story is clearly not to be seen by a magnifying glass. The South east, which was the result of the "incredible performance", was a far more than 60% per cent profit margin for 4 consecutive fiscal months, much higher than the US-listed peers. The oriental paper, "Hunted" by Muddy Waters, was accused of "exaggerating 2008 years of operating income 27 times times".

In fact, during the 2010-2011, the massive accounting scandal left investors with a collapse in confidence in the shares. In addition to exaggerating revenue, falsely increasing profits and other naked financial fraud, listed companies information disclosure is not standardized, inaccurate, incomplete is also criticized by investors one of the factors. Coupled with a lack of understanding and language barriers to securities laws and regulations and culture in North America, many companies are not able to communicate effectively with investors and regulators at the first time after shorting.

Wang, a professor of merger control and the Renmin University of China, points out that to date, the potential risks of the information disclosure system remain manifold. There are too many commonalities in the stock company, and the risks cannot be avoided. In addition, the information disclosure system of China and the United States, also led to a lot of Chinese companies to go to the United States when the market is difficult to consciously practice information disclosure, or corporate internal governance is not up, or can not afford the resulting increase in the listing costs. This makes muddy water and other short institutions, there is a place to exercise their fists.

In the United States has formed a clear industrial chain

The analysis of enterprise problems in the United States and the delisting strategy report reveals a frustrating fact. is known as the confidence crisis year in 2011, the long-term suspension and has retired from the market in the stock up to 46. However, many of the reasons for the attacks are unfounded, or there is a slight flaw in the understanding of foreign rules, and finally proved to be a problem in the stock is only a few, but the middle-stock group is therefore costly. Even if the shorting agency is accused of deliberately manipulating its share price, few of the companies have the energy and money to resort to law.

At the same time, the United States in recent years to do more than 20 aerial units, including muddy water, incense, olpglobal and so on. To do aerial stocks in the United States has formed a research institutions, hedge funds and law firms as the main force of the clear industrial chain. In the face of powerful shorting, is the stock ready?

In July this year, the SFC decided to provide the U.S. side with the relevant corporate accounting papers, marking the Sino-US accounting audit Cross-border Law enforcement cooperation has taken a substantial step, to some extent, the investors to the confidence of the shares. The head of the SFC stressed that "the listed companies that do involve financial fraud should be dealt with in accordance with the law, but the good listed companies should also be clean, to safeguard the good image of Chinese companies in the United States listed companies to create a good environment for Chinese enterprises to list overseas." ”

Zhou Junsheng, a well-known financial critic, said the iron needed to be hard. Fundamentally speaking, the part of the stock market in the United States to defeat the most fundamental thing is that these companies have their own quality problems. Chinese enterprises to enter the lumpy of the international capital market, but also rely on their own excellent quality.

Morning News reporter won Jia

Onlookers 1

No one on the phone

For the NetQin "endorsement"

Make the Net Qin unexpectedly is, domestic also began to question voice, especially mobile phone partners No one stood out for the Network Qin "endorsement." NetQin has claimed that and Huawei, ZTE, Lenovo, Cool faction, Gionee and other dozens of mobile phone manufacturers have many years of pre-installed cooperation, this is a huge number of users. However, media reports said ZTE, Huawei and other manufacturers said that there has been no commercial pre-installed with the network of cooperation.

Helpless, the October 31 network Qingong opened the rumor that can provide evidence to show the business relationship with partners, and said the reputation should not be taken to jest. For the relevant mobile phone manufacturer's attitude, the Network Qin pointed out that the mobile phone enterprises internal communication problems caused by misunderstanding.

In the muddy waters of the short report, "The number of users fake" is undoubtedly short of the Net Qin a punch. And Lin Yu has pointed out, the Network Qin's user channel mainly has the handset pre-installed and the network downloads. One of the mobile phone pre-installed with the "China cool Joint" and other mobile phone manufacturers have pre-installed cooperation.

The latest news shows that Lenovo confirmed that the NetQin is indeed a supplier, but did not open the details of cooperation. Huawei and ZTE have no response to the NetQin. In this respect, Yuchun said that at this sensitive moment, the partners are very understanding of the Conservative, neutral attitude.

Morning News reporter Giolikun

Onlookers 2

Where to, 58 city

Market not affected

When the Network Qin encountered muddy water short raid, the frozen Chinese enterprises to the United States IPO road but came good news. China's largest information classification site 58 with the city and Baidu holding tourism vertical search site to where the net last week has successfully listed in the United States. Analysts believe that the IPO of Chinese companies is coming soon.

October 31, China's largest information classification website 58 with the city successfully landed in the New York exchange. The first-day opening price of 21.22 U.S. dollars, more than 17 U.S. dollars rose 24.8%, the plate up to 26.99 U.S. dollars, market capitalisation of more than 2 billion dollars. The day closed at 24.12 U.S. dollars, rising 41.88%. November 1, Travel vertical search site to where the net successfully landed Nasdaq. Where to go? The net price is 15 U.S. dollars, the day of the listing directly up to 28.35 U.S. dollars, higher than the issue of prices 89%, closed at 28.40 U.S. dollars, up 89.33%, the highest increase in the plate was more than 130%. According to the closing price, the net market value is 3.7 billion dollars.

58 the city and where to go the successful listing of the net finally let the industry see the Chinese companies to the U.S. listing window to restart the hope. It is understood that including 500 lottery nets and 3G portals have also submitted a listing application. Senior Internet analyst Bo points out that the recent moderate upturn in the US economy and the fact that the Fed accidentally maintained QE had created better conditions for IPOs, with the Dow Jones Industrial average rising more than 16% per cent earlier this year, and the Nasdaq index rising more than 25% per cent earlier this year, Chinese companies listed in the U.S. window period has been opened, so the qualified companies are rushing to the window period of the listing.

Chinaventure said that the ice-breaking, or even the upsurge, does not mean that the shares will have outstanding performance. America's capital markets are easy to come by, and the SEC's stringent regulatory regime for the financial and corporate governance of listed companies is also making it more stressful for the companies themselves to be creative in business models and sustainable growth in the US capital market.