SEC judge bars "Big Four" China units for six months over audits - search this story.
Basically The SEC is attempting to subpoena the financials of the Chinese listed ADR's and Chinese Gov't's privacy laws are preventing this from happening. It's a battle going on that will no doubt take some time but it's ever a good thing that the SEC is looking for massive fraud... This rattles the markets big time.
We can not say all of them are bad.
SEC usually go after the tiny ones like Sino something .
Take this panicking that a couple of flies in a bowl of soup and say that huge pot of good soup is bad.
It happened before and QIHU VIPS BIDU...etc all went back up 200 300% higher.
Do not scare people. We understand..
First of all I didn't say they were all bad. Some will be bad by human nature. Same in the US. SEC goes after the big ones, not the small ones. There are three negative reports out from China today not just the SEC so this is not just flies in the soup. That doesn't mean I'm not a buyer here on some Chinese stocks I like. I added QUNR and some cheap QIHU calls. In QIHU I would be taking most of my profits on the mid-day rally... As I have been saying to you all, you should have sold at $95ish level and look for lower levels like today. If QIHU makes new highs then pay a little more for the stock and be right on the confirmation of new highs. Better to pay $3 more for stock than to be looking at sub $90 stock again. I'm using calls and puts on QIHU to define my risk - better play than being long!! I know this has happened to QIHU and the rest many times as I have been on here providing insight. I'm not scaring people. These are the facts and investors should know as many don't fully understand the news from today..
yes this has been going on for a while but the US courts just won a case to move forward in their fight to release financials to the US. The SEC is trying to protect the investor which will shake the landscape. In these financials there is no doubt an ugly cloud. I think Friday is the day that the auditors have to release the financials or they are removed for 6 months. Sort of trying to force their hand. I'm not sure 100% as to what BG was referring to on Friday?
you need to do a little more homework and be a little more open mined. Don't be so rah rah QIHU. It will cost you. Better to try and understand the dynamics of this new waters case between the SEC and China... These stocks are listed in the US and the SEC could stop them from being listed here if these companies don't conform to our laws. That would be catastrophic...