Apology for Being Totally Wrong On Xinyuan Real Estate
Sorry, I was totally wrong. When I originally post I thought Xinyuan had some value. I was wrong. It is worthless. In my defense an event I never thought would happen occurred. Go figure. In China figure out the most unlikely outcome to predict the future.
Yesterday, the SEC bounced the Chinese Big 4. So, this listing, and every US-listed mainland Chinese listing, is worthless. Even one with an allegedly genius Chairman.
A slight exaggeration on your part Casey, lol you sound like Infn. The so called bounce of the big 4, in this case E&Y`s Hua Ming (I told you last year they were going to get nailed in the US and probably in the case in
HK), is a 6 month suspension, which will be appealed almost immediately by the Big 4. They will tie this up
for a couple years, which allows them to keep auditing. Also, as Xin is about to report the year and quarter,
the work has already been done. Since E&Y`s services will not be required until next year, there will be no
interruption or scrambling around to find a new auditor. It will be business as usual. I did figure this issue and
the contraction in the PMI would definitely be a good excuse for a sell off of Chinese stocks. People act first
and think second, but this will be realized in a day or two. Anybody with a couple brain cells knew this was coming. (I thought the suspension would be for at least a year, 6 mos. tells me this is an SEC bargaining chip)
This is simply a knee-jerk reaction, but unfortunately it put a crimp in Xin`s developing momentum.