Seeking Alpha

Chinese tech stocks tumble on SEC action; new Qihoo/Alibaba rumor emerges

  • SEC administrative law judge Cameron Elliot has barred the Chinese units of the Big-4 accounting firms - KPMG, Deloitte, PwC, and Ernst & Young - from auditing U.S.-listed companies for six months.
  • Elliot declares the accounting firms "willfully" chose to withhold audit work papers from U.S. regulators for Chinese companies being investigated for accounted fraud. The firms have been worried about violating Chinese privacy laws by turning over the papers, and have argued the dispute needs to be resolved politically.
  • Though the firms plan to appeal and say they can continue serving Chinese clients for now, shares of Chinese Web and solar names aren't handling the news well. Soft Chinese PMI data could be worsening matters.
  • Chinese Web decliners: BIDU -2.5%. SOHU -3.2%. DANG -8.9%. SFUN -8.5%. PWRD -8.5%. QUNR -7.1%. LITB -6.5%. YY -6.1%. WUBA -6%. BITA -5.4%. EJ -5.9%. SINA -4.6%. LITB -6.5%. CTRP -5.4%. NQ -7.1%.
  • Chinese solar decliners: TSL -8.7%. JASO -6.9%. SOL -6.3%. JKS -5.6%. CSIQ -5.4%. DQ -4.6%. YGE -5.6%. CSUN -6.2%. HSOL -7.8%.
  • Qihoo (QIHU -4.6%) has joined the selloff in spite of a BrightWire report stating Alibaba (ABABA) has reached a deal to acquire a stake in the company. Marbridge Consulting reported two weeks ago Qihoo and Alibaba were in talks about a possible investment.
Comments (9)
  • Can't the big 4 simply have their US units audit the US holdings?
    23 Jan, 05:28 PM Reply Like
  • How much Chinese is a stock with a name like Canadian Solar IQ ? nobody in the world produce solar panels but China ?
    23 Jan, 07:55 PM Reply Like
  • I was wondering why CSIQ was listed as a Chinese solar decliner

     

    "Canadian Solar is a Canadian Company with Global Reach"
    " 2006. Became the first solar company in Canada get listed on NASDAQ Stock Exchange in USA (CSIQ) "

     

    http://bit.ly/M45ojo

     

    I wonder is SPWR is Chinese now....LOL
    24 Jan, 11:04 AM Reply Like
  • CSIQ's name is misleading. The lion's share of the company's operations are in China.
    24 Jan, 11:13 AM Reply Like
  • The interesting thing is that the exact same headline appears on a regular basis about once or twice every year. It always has the same reason that some papers that are for chinese eyes only haven't been turned over. What is this really all about and what do the big companies really have to worry about?
    24 Jan, 12:31 AM Reply Like
  • ! ! ! ****** == Only 12 of s&p 500 are green. All 488 remaining are red. That is either THE; or the END of a CLASSIC Climactic selloff. Exactly the opposite of a bullish green parabolic spike which then sharply reverses to the downside. I expect that at ANYTIME even starting Monday morning after an initial ''margin-call-drop,'' that the mkts (especially Nasdaq,) will be on an upside for the rest of 2014. 52-years of mkt trading experience tells me so. LONG SOLARS TODAY. THEY WILL FLY JUST LIKE LAST YEAR. ==== SCTY; JKS; CSIQ; SPWR; FSLR.
    24 Jan, 03:41 PM Reply Like
  • Interesting thesis 'Niboryak'.. My logic tells me you may be right re: classic selloff followed by strong reversal upwards. Whilst I agree 2014 will be good for solars i reckon LONGS may have to absorb some more volatility & possible downside before that uptick trend begins in earnest.
    Who actually believes that this SEC action may affect the Chinese solars further before it blows away?.. JKS, CSIQ, TSL, YGE, SOL, HSOL??..
    26 Jan, 05:55 PM Reply Like
  • ........Hi ''squashjohn''....Well I hope i'm right for the sake of all of us solar longs. I do agree with you on ''more volatility to come.'' The thing is though; this time unlike the big 5-years ago solars rise; that these ' newborn ' companies are running on pure fundamentals rather than T/A or simply short squeezes. Costs and oversupply are way-way down; and demand is way-way up. Some now even have (GASP) P/E'S for gosh sakes; LOL. Clean nat gas ?? What a joke. like 'clean' coal. Nat gas is STILL 40-50% of coal's co2 emissions; not zero. Solar is still the answer to Japan not wanting another nuclear plant; and China's killer pollution. Anyway; i think solar stocks are played like TSLA-NFLX-AMZN etc etc. They have tremendous ups & downs to be taken advantage of.
    26 Jan, 08:35 PM Reply Like
  • I am sure everybody has seen this by now

     

    "This is not a new matter and Canadian Solar is not a defendant in the SEC lawsuit involving the Chinese arms of U.S. accounting firms and access to audit working papers from accounting firms," Canadian Solar spokesman David Pasquale said in an email. "Canadian Solar has fully cooperated with the SEC, including instructing our audit firm to release the working papers, and disclosed the matter in our filings."

     

    http://reut.rs/1fmQAGi

     

    "On Monday, the SEC and Deloitte filed a joint motion to have the agency's two-year-old lawsuit against the accounting firm dismissed "

     

    http://1.usa.gov/1iZXvJq

     

    looks to me the Sec is behind us , just the usual funds playing games now
    1 Feb, 07:17 PM Reply Like
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