Seeking Alpha

In the wake of numerous scandals involving Chinese companies listed on Western stock exchanges,...

In the wake of numerous scandals involving Chinese companies listed on Western stock exchanges, Chinese authorities are cracking down on ... those who raise the questions. Huang Kun - part of the team which put together a negative report on Silvercorp (SVM) - was arrested in Beijing at year's end and expects to soon face criminal charges. Documents suggest Silvercorp worked with officials on the investigation of Mr. Huang and even helped pay for it.
Comments (32)
  • China isn't going to win the war against economics, I don't think. But they will try.
    16 Feb 2013, 04:19 PM Reply Like
  • either will bernanke
    16 Feb 2013, 05:36 PM Reply Like
  • Those who invest there or in their stocks deserve whatever they get.
    16 Feb 2013, 04:34 PM Reply Like
  • This should not surprise anyone. The Chinese have a great sense of A Few Good Men - "You Can't Handle the Truth", so we will either arrest those that speak it or rewrite history to our version.

     

    Not surprised one bit
    16 Feb 2013, 04:38 PM Reply Like
  • Long live His Imperial Majesty Emperor Xi!

     

    Guy is now coming on strong; Strongman Xi is now coming on strong.
    16 Feb 2013, 04:45 PM Reply Like
  • @Teutonic - Xi is an Emperor in underpants. You know why? Because labor is getting more expensive there AND energy in China. Energy is getting cheaper in the US. In the times of robots energy is more relevant. The only chance for China is a ton of nuclear energy.
    16 Feb 2013, 07:59 PM Reply Like
  • Yeah, but the New Pharaoh will scourge them twice as hard in this Land of the Yellow Slaves! 5xROFL!
    17 Feb 2013, 01:57 PM Reply Like
  • Dictatorship. That is why China will fail. Endless corruption will kill it.
    16 Feb 2013, 05:55 PM Reply Like
  • The PLA is in firm control. The word is control.
    16 Feb 2013, 05:56 PM Reply Like
  • Endless corruption? You mean like in the USA?

     

    Seems to me we are emulating China more and more every day - with the exception that they might actually have more economic freedom.

     

    Heck, we just announced 6 domestic sites to be selected for the operation of drones in the USA. Soon the government bureaucrats will track your car, your financial transactions, and now your movements in the backyard. Just on the horizon is the two way tv recording your every move in your house (only to be used in emergency situations - trust us).
    16 Feb 2013, 06:31 PM Reply Like
  • But will endless corruption kill us too?
    16 Feb 2013, 07:47 PM Reply Like
  • The corruption in democracies at least gets cyclically corrected - except of in some states. But, no doubt, the world is corrupt.
    16 Feb 2013, 07:50 PM Reply Like
  • @Davidbdc: Well, in China this IS already the case. They, on the other hand, let criminals who harm US run around free. Has anyone involved in CCME been arrested? No. Not one dime of my money in China stocks as long as that is the case. Corrupt. CCME has excellent connections to politicians - look at all the nice documents they had stamped by China officials. CCME cost me some money. I won't forget that. I got out before it completely collapsed.
    16 Feb 2013, 07:55 PM Reply Like
  • That correction requires "we the people" to be in charge.

     

    Corporations are now people too, with much deeper pocket books. . .
    17 Feb 2013, 09:20 AM Reply Like
  • But they are the Middle Kingdom. It is our duty to give them what they need, and if we refuse, it is their right to take it by any means available as we only exist to satisfy the needs, wants, and desires of the Middle Kingdom.

     

    Most Americans don't understand/appreciate the Chinese concept of the Middle Kingdom - and that is why we are doomed to fail when it comes t China
    16 Feb 2013, 05:59 PM Reply Like
  • Chinese need be more proactive at these arising problems.They need to set up some organization like SEC. There have been too many frauds that would drive many investors away.

     

    Burn me once, shame on you. Burn me twice, shame on me. I've been carrying this shame for a long while.
    16 Feb 2013, 06:07 PM Reply Like
  • I never buy Chinese stocks and never will. There are other ways to trade the "China story".
    16 Feb 2013, 06:22 PM Reply Like
  • You missed some good opportunities several years ago. In this decade, China represents the best appreciation with selected companies. I just buy FXI and PEK as I do not have enough time and the expertise in this market.

     

    The only two folks I know who are/were billionaire participated in Chinese IPOs.
    16 Feb 2013, 06:25 PM Reply Like
  • "I never buy Chinese stocks and never will. There are other ways to trade the "China story"."

     

    Why pass on one of the best scams of the century. The first few people in every Ponzi scheme make out like kings.
    16 Feb 2013, 06:37 PM Reply Like
  • You are not the first people anymore.
    16 Feb 2013, 07:51 PM Reply Like
  • People are people and people in power use their authority any way that they can regardless of government structure.

     

    However, as investors we are to assess risk with every investment we take. And in China, right now, the risk does not justify the invesment in my opinion.
    16 Feb 2013, 08:10 PM Reply Like
  • Shorting these Chinese frauds has been a multi-year project. More here: http://seekingalpha.co...
    16 Feb 2013, 08:15 PM Reply Like
  • I do not see much reference to chinese frauds there - more to US "frauds" like HLF. Any suggestion for a good chinese short? How about Qihoo360 with their spy- and malware?
    16 Feb 2013, 08:41 PM Reply Like
  • Kinda sounds like Holder's justice dept with S&P.....
    16 Feb 2013, 09:15 PM Reply Like
  • Lost a bunch on PUDA, a metallurgical coal company in China. Listed in tha U.S., China needs the stuff to fire their factories, etc. But, the crooks somehow sold the company to somebody else, and nothing further became of it. If nothing else, China itself should buy the company, if for no other reason than to instill a feeling for foreign investors, besides, it is supossedely mellalurgical coal. Since they are not the U.S., I would love to hear the Chinese government convict these criminals & their government associates, and sentence them to death with the intention to harvest their organs for reptilial animal transplant research.
    16 Feb 2013, 09:58 PM Reply Like
  • PUDA - I remember that one. You are funny with that reptilian animal transplant research. As existant as PUDA and the SINO Forest trees and the CCME money in bank accounts. LOL.

     

    Hey, PUDA still trades. $o.o32 / share. WOOT.Better than CCME at o.o2 / share. For the value investor.
    16 Feb 2013, 10:17 PM Reply Like
  • Politics aside, SVM does have a good story. Consistent dividends payout and guided increase in production couple with prospect of an overall supply shortfall. I see value in this play. It is already near 52 wk low.
    17 Feb 2013, 12:35 AM Reply Like
  • China will save the world with it's engine of growth. There are no corporate defaults in China!!! Bullish
    17 Feb 2013, 10:14 AM Reply Like
  • Many Americans are still fueling the Chinese crooks by buying Chinese stock.
    17 Feb 2013, 12:00 PM Reply Like
  • We are all fueling it because they have now a monopoly on many things......all plastic crap goods come from China.
    17 Feb 2013, 01:03 PM Reply Like
  • An exercise in shooting the messenger. Won't make the message go away, nor make the message untrue. When China pulls these, what amounts to childish, moves, it fails to inspire confidence in their ability to operate a free market, any better than North Korea could.

     

    China's actions in this matter are to be considered a fatal flaw in their ability to govern their markets honestly. Investors should steer clear of Chinese stocks. Their Disneyland accounting and reporting methods, don't cut it in the real world.
    17 Feb 2013, 04:38 PM Reply Like
  • ...stay away like a plague...
    17 Feb 2013, 04:40 PM Reply Like
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