2011 should be named "Year of Chinese Scams"
Even as I type Chinese Stock scams continue..
Beware of SINA, BIDU, SFUN, YOKU, SOHU , VIT , DANG , QIHU, because Scams have continued in CHINA with no slowdown and floodwaters drown all victims even the non guilty parties.
QIHU called a scam 12/7/11
CMED called a scam 12/6/11
A more cut-and-dried case of fraud has crushed investors in Beijing-based Longtop Financial Technologies (NYSE: LFT).
The recent accounting scandal at Chinese software company Longtop (NASDAQ: LFT), which hoodwinked even its blue-chip underwriters, causing its auditor Deloitte Touche Tohmatsu to resign (see Reuters’ report on the incident), has highlighted the enormous dangers inherent in the recent craze for cashing-in on China’s ongoing IPO boom.
It’s not just Longtop, but a whole host of other firms who are suspected of bad accounting practices, which leave their IPOs and valuations on very thin ice. The proverbial brown stuff has hit the fan already for two Chinese firms – Shengdatech, and China MediaExpress – who have been delisted from Nasdaq, and are now under US legal investigation for misleading investors. This year's IPO darling YOKU could also be headed in the wrong direction with a failing business model that lost $25 million in the first 3 quarters of 2010 and over $100 million since inception.
other scams in 2011 included: SinoTech's (CTE) has been halted since mid-August
Partial Chinese Stock list of stocks in trouble:
CHBT now 0.64
CAGC now 1.81
CNAM now 0.27
CMFO now 1.39
SKBI now 2.61
CELM now 0.11