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Baidu (BIDU -9.4%) and Sina (SINA -13.1%) plunge on rumors the DOJ is investigating claims of...

Baidu (BIDU -9.4%) and Sina (SINA -13.1%) plunge on rumors the DOJ is investigating claims of accounting fraud at the companies. Other Chinese Internet stocks are also getting hit: SOHU -9.4%. YOKU -14.5%. TUDO -5.9%. PWRD -3.8%. SNDA -3.8%.
Comments (7)
  • KSAccountant
    , contributor
    Comments (769) | Send Message
     
    Fraud at a Chinese company?! What?! You have got to be kidding!! The Chinese run the most honest businesses in the world! They would never think of putting lead in paint used on children's glasses, melamine in food fed to both pets and humans, and manipulating their currency. I think they just get a bad rap...and if you believe what I just said, I have some wonderful orange groves in Alaska for sale!

     

    Why is their fraud any surprise to anyone?!
    29 Sep 2011, 11:18 AM Reply Like
  • moonwalker
    , contributor
    Comments (7) | Send Message
     
    Surprise! What an intelligent comment with a conceited sense of self-righteousness.
    29 Sep 2011, 11:35 AM Reply Like
  • waiming
    , contributor
    Comments (3) | Send Message
     
    the biggest accounting fraud are here. Enron and lehmans brothers.
    29 Sep 2011, 11:41 AM Reply Like
  • KSAccountant
    , contributor
    Comments (769) | Send Message
     
    Hmmm...interesting. Here are a few details taken from a Forbes article on the topic (http://onforb.es/rm0rB2/)

     

    "Nearly one third of securities fraud cases on file in the last 60 days are Chinese companies, most of them microcap stock fraud cases."

     

    " There were around 24 securities fraud cases brought against Chinese companies traded in New York in 2010."

     

    "But what it does is shed a light on the fact that Chinese companies are not playing by the same rules. There are dozens of mini-Enrons and WorldComs run by Chinese managers. But there are also the major large cap name brands, who may not be entirely cooking the books, but survive by off-balance sheet, unaccounted for loans and cash. In short, no one knows what Chinese companies are really worth. Yet, many companies, like internet search engine Baidu (BIDU), are trading at nearly 50 times forward earnings. No one seems to mind, either."

     

    All taken from the same article. Additionally, do tell why China has the largest theft of intellectual property of any country in the world?

     

    Look, I am not saying the US is much better, I am just sick of everyone being "shocked" when another Chinese company is using accounting fraud to make themselves look good. I am advising a healthy dose of skepticism. But, at least the Chinese government has one thing right...they execute the leaders of fraudulent companies instead of giving them more money.
    29 Sep 2011, 12:10 PM Reply Like
  • emburns
    , contributor
    Comments (218) | Send Message
     
    This is BS. BIDU might be one the most sound companies with an outstanding balance. This investigation is just a witch hunt.
    29 Sep 2011, 11:21 AM Reply Like
  • Drew Robertson
    , contributor
    Comments (314) | Send Message
     
    Here's a list of the big funds that had too much in China names. http://t.co/Y3d7OwU1 Such trusting people. Didn't they know?
    29 Sep 2011, 11:58 AM Reply Like
  • whaddyamean?
    , contributor
    Comments (514) | Send Message
     
    HUO GAI !!!
    30 Sep 2011, 10:05 AM Reply Like
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