But they said they will consider to put level 2 to level-1 , if it helps in perception. They also said in reality it takes less than a day to get cash out of level2. It is different in China than US. IN US it is not easy to take cash out of level2 without getting penalized.
Seems to me a moot point. But What do I know...in market style (MW) always wins over substance.
Actually it is common practice. The difference is most other companies also hold some form of liquidity in lvl 1. NQ did state that they have liquidity and will provide proof for that. So we just need to wait and see.
And the way NQ is treating lvl 2 is not that outrageous in China. Because you only need 8 days to convert. Not that big of a deal in this biz. They even put the converted notes as lvl 2 meaning that's how it was setup on the get go.
If that's also true, then NQ is actually in a strong position because that suggest NQ doesn't have any debt issue at all (prior to the note conversion).