China Prospective Stock has once again become a target?
There is no doubt that the incident of Ruixing’s “counterfeiting” is a big blow to the Chinese stock market.
April 23, US Eastern Time, popular Chinese stocks fell. Among them, Pinduoduo fell 5.71% to close at 49.17 US dollars; Station B fell 7.25% to close at 28.01 US dollars; Baidu, Ali and NetEase all fell more than 1%.
On the same day, the US Securities and Exchange Commission (SEC) Chairman Jay Clayton said in an interview that investors are advised to carefully consider the stocks of Chinese companies listed in the US because of information disclosure issues.
After being affected by S & P ’s multiple meltdowns, the Chinese stocks have to withstand “sniping” from short-selling companies. Within a few days after the Ruixing incident, many Chinese stocks such as iQiyi and Who Learned were successively issued multiple shorts by short companies. A good future even exposed itself, saying that during the internal audit process, it was discovered that an employee may collude with external suppliers and forge contracts, which erroneously exaggerates the company’s sales data. The stock prices of several companies fluctuated sharply on the day of the incident.
In fact, the stock exchanges in both China and the United States have expressed great concern over the incident of Ruixing ’s fraud.
On April 3, the China Securities Regulatory Commission issued a statement saying that it paid close attention to Ruixing Coffee ’s financial fraud and strongly condemned the company ’s financial fraud. The statement stated that no matter where it is listed, listed companies should strictly abide by the laws and rules of the relevant market, and fulfill their information disclosure obligations in a true, accurate and complete manner. The China Securities Regulatory Commission will verify the relevant situation in accordance with the relevant arrangements of international securities regulatory cooperation, resolutely combat securities fraud and effectively protect the rights and interests of investors.
The US Securities and Exchange Commission may also communicate with the Securities Regulatory Commission regarding fraud. According to the “Financial Graffiti” news, shortly after Ruixing self-disclosed financial fraud, the US Securities and Exchange Commission has contacted the China Securities Regulatory Commission to communicate with the CSRC on the thorough investigation of Ruixing Coffee.
On the day before Clayton made the remarks, he and several officials including the Chairman of the Accounting Supervision Committee of US listed companies jointly issued a public statement. In the statement, it reminded investors in the United States to pay attention to the risks of the quality of financial reports and information disclosure when investing in companies with headquarters in emerging markets or major businesses in emerging markets. The SEC has limited measures to do.