If you base your investment decisions solely on a 60 Minutes news piece...
...then you have some much larger issues with your investment strategy. To clarify for anyone who did not see the news piece, XIN was of no mention at all during the entire report, so there's no basis behind all of these individuals claiming on this message board that the company was "exposed as a fraud." (And for those making claims that "all" Chinese companies are flat-out frauds is just ridiculous).
There is some sentiment out there that the Chinese real estate market is currently in an unstable and expanding bubble, but this has been widely publicized and known for quite a while - certainly before the recent run-up of XIN's stock price. So this potential "bubble" really isn't new information for anyone who has taken any small amount of time doing their own due diligence and research.
Furthermore, if there is a real estate bubble growing and ready to burst in China (which there very well may be), we will see enormous effects globally throughout the markets if/when the bubble bursts. China's economic growth has been one of the few areas of optimism and growth since the financial crisis took hold in 2008. If their real estate market crashes, which is reportedly 20-30% of their economy, we will experience enormous negative effects across all markets and thousands of investments, domestic and foreign. So if you truly think that's about to take place, you'd best liquidate your trading accounts and put that money in a CD at your local bank.
i disagree with your post on many levels. it is not a matter of reaction to 60 Mins. The central govt in china has put in place some new regulations which may or may not affect thing. as an investor one should know about potential changing environment that xin will be operating in. there are many issues to be explored and assessed.
forget about fraud or not.
forget about bubble or not.
first and foremost understand what the new regulations will mean to xin, and then talk.
The new regulations are a positive for XIN. XIN did very well when the Govt put regulations in place the last time...and the will do even better this time with their vastly improved balance sheet. When prices go up too fast, regulations are put in place to slow the price rise. When prices fall to much the Govt stimulates.