For those who want to paint NASDAQ as an overzealous regulatory czar, consider this. 3200 companies are listed on the NASDAQ and only one is currently halted. I am long and hoping for a quick resolution but they obviously are not satisfied with the information provided by YONGs management at this point.
Nasdaq is sick of the Chinese BS in general and is watching this one real close as it affects more investment dollars including several institutions and mfunds. IMO they halted it to protect investors from a huge sp swing. It was halted right after they missed reporting and had a big afterhours drop. As many bashers pointed out, YONG was following a familiar script that in some recent instances ended bad for investors, announce a buyout so some of the crooks can get out at a higher sp, then cave in completely. I don’t think this is the case with YONG, but their actions coincided (or maybe were done on purpose) with companies that turned out to be frauds. Nasdaq wants to know if they’re following through with the buyout and if not, why. If they don’t follow through and Nasdaq doesn’t like their explanation, then continued listing becomes the issue. Yongye has had to recalculate what they think they can get away with for a buyout sp and probably found it to be higher than their financing or higher than they think is worth taking on all the risk. There are many angles to consider with many people exposed to litigation. Some real heated arguments are going on. One thing favoring a buyout is that the company is growing fast and if they don’t do the buyout now it will just mean a higher price later.
It's refreshing that NASDAQ is holding YONG's feet to the fire. China needs to earn the trust of investors within and outside their nation after so many questionable and outright fraudulent events have occured with little of their government's interference. The attitude seems to be 'if you can screw 'em, good luck!'. The US could ALSO learn some new tricks.