“Although share prices are gradually picking up, we have suffered a lot of economic losses. Our corporate reputation has been seriously violated. We have filed a lawsuit in the High Court of New York.†Recently, Li Jing, Secretary of the Board of Directors of Shaanxi Sangang Biotechnology Co., Ltd. accepted An interview with reporters said.
Li Jing’s lawsuit stems from the fact that shares of the company listed in the United States this year have been maliciously suppressed by some institutions, leading to a sharp drop in the stock price. According to the reporter’s understanding, China’s listed stocks, which have always been sought after, have encountered a “cold stream†this year. More than 130 listed companies have been shorted by some institutions, leading to a sharp drop in the stock price, and even forced withdrawal from the market to stop trading, among which there is no shortage of oil. Chemicals, pharmaceuticals and other enterprises, Shaanxi alone Xi'an Baorun, Sangang Biological, Star Pharmaceutical, West Blue Gas and so on.
Sone Biotech is a company that develops and produces new types of environmentally friendly new energy. It currently builds 500,000 tons of coal-water slurry production bases in Tongchuan, Shaanxi, and Dongguan, Guangdong. According to Li Jing, in April of this year, an American agency began to attack Soong Bio, claiming that they had no substantial production operations, no sales and no profits. In the short period of time, the share price of Biosciences has dropped significantly.
The fate of some Chinese concept stocks is even worse. From March 14 onwards, at least 19 Chinese concept stocks were suspended by the US capital market one after another, including four chemical companies such as Aretek, Shanda Technology, Keyuan Plastics, and Xi'an Baorun.
Xi'an Baorun Industrial Development Co., Ltd. is a privately-owned comprehensive energy company whose main business is the wholesale sales of refined oil and heavy oil. In 2006, he was involved in the R&D and production of biodiesel, and completed 100,000 tons and 50,000 tons of biodiesel projects in Shaanxi Tongchuan and Chongqing respectively. The expansion of the business does not require large amounts of capital to be injected, and it is difficult for the enterprise alone to support it. Under the tempting "Lobbying" of intermediary companies, Xi'an Baorun was listed on Nasdaq in the United States in October 2007 and became one of the Chinese concept stocks.
“Although the cost is very high, the initial listing did involve some funds. However, unexpectedly, the intermediary companies are tempted by the interests, and some organizations are short for us and publish a lot of news that does not conform to the facts.†Xi'an Baorun Industrial Development Co., Ltd. The deputy general manager, who declined to be named, said in an interview with reporters. It is understood that these agencies claim Xi'an Baorun concealed the related transactions between the company and the company's senior management and directors, allegedly distorts financial performance and business prospects, and has no substantial business activities. In a series of attacks from short-selling institutions, Nasdaq stopped Xi'an Baorun Trading on April 20, and was forced to withdraw from the market on June 15th, switching to a pink market with a lower credit rating and losing the main board market*. *Features. On the day of the pink market, Xian Baorun's closing share price fell to US$0.68, a 63% drop from the previous suspension.
“We are entrusting US third-party agencies to enter enterprises to conduct investigations and hire relevant auditors and lawyers to set up special committees to investigate and collect evidence, clarify facts, and provide shareholders and investors with a satisfactory answer.†Xi'an Baorun Industrial Development Co., Ltd. The deputy general manager said. He stressed that the experience of Chinese concept stocks should arouse the attention and attention of high-level government officials. It is recommended that powerful investment institutions use current low-cost opportunities to buy back Chinese concept stocks as soon as possible to help companies tide over the difficulties.
It is understood that, unlike China, the short-selling mechanism is normal in the U.S. capital market. If one bears a bearish stock, investors can sell short, and by selling a certain amount of shares to a third-party institution, they can sell at the current market price. When the stock price falls and then buys it back, the stock will go back and the difference will become profit. In other words, stocks may still make money when prices fall.
Shen Xiaoxu, Account Manager of Shaanxi Open Source Securities Co., Ltd. believes that it is not ruled out that certain institutions maliciously suppress Chinese concept stocks, and they may profit by short selling. However, Shen Xiaoxu said that relevant companies must also find reasons for themselves. Some companies have flaws in their financial accuracy and authenticity, and they are easily regarded as fraudulent or without substantial production and operation.
According to industry insiders, the overseas listing threshold is relatively low, and the formalities are convenient. Domestic enterprises are rushing and there are more than 270 Chinese concept stocks currently listed in the United States. However, the post-listing supervision is very strict, the annual maintenance cost is also expensive, and the information disclosure requirements are very high. Once fraud occurs, it will take high costs.
Obviously, since they are listed overseas, related companies must be familiar with and adapt to the local capital market rules of the game. In response to some enterprises’ short-selling on the risks of overseas listings, Wu Gang, deputy director of the Institute of Economic Research of the Shaanxi Academy of Social Sciences, said that overseas listing is a “double-edged sword†and SMEs must make adequate preparations. In the face of differences in language, legal rules, and high cost of rights protection, some small and medium-sized enterprises are often hurt. Small and medium-sized enterprises that lack strength, especially not enough internal strength, must be cautious.
Li Jing’s lawsuit stems from the fact that shares of the company listed in the United States this year have been maliciously suppressed by some institutions, leading to a sharp drop in the stock price. According to the reporter’s understanding, China’s listed stocks, which have always been sought after, have encountered a “cold stream†this year. More than 130 listed companies have been shorted by some institutions, leading to a sharp drop in the stock price, and even forced withdrawal from the market to stop trading, among which there is no shortage of oil. Chemicals, pharmaceuticals and other enterprises, Shaanxi alone Xi'an Baorun, Sangang Biological, Star Pharmaceutical, West Blue Gas and so on.
Sone Biotech is a company that develops and produces new types of environmentally friendly new energy. It currently builds 500,000 tons of coal-water slurry production bases in Tongchuan, Shaanxi, and Dongguan, Guangdong. According to Li Jing, in April of this year, an American agency began to attack Soong Bio, claiming that they had no substantial production operations, no sales and no profits. In the short period of time, the share price of Biosciences has dropped significantly.
The fate of some Chinese concept stocks is even worse. From March 14 onwards, at least 19 Chinese concept stocks were suspended by the US capital market one after another, including four chemical companies such as Aretek, Shanda Technology, Keyuan Plastics, and Xi'an Baorun.
Xi'an Baorun Industrial Development Co., Ltd. is a privately-owned comprehensive energy company whose main business is the wholesale sales of refined oil and heavy oil. In 2006, he was involved in the R&D and production of biodiesel, and completed 100,000 tons and 50,000 tons of biodiesel projects in Shaanxi Tongchuan and Chongqing respectively. The expansion of the business does not require large amounts of capital to be injected, and it is difficult for the enterprise alone to support it. Under the tempting "Lobbying" of intermediary companies, Xi'an Baorun was listed on Nasdaq in the United States in October 2007 and became one of the Chinese concept stocks.
“Although the cost is very high, the initial listing did involve some funds. However, unexpectedly, the intermediary companies are tempted by the interests, and some organizations are short for us and publish a lot of news that does not conform to the facts.†Xi'an Baorun Industrial Development Co., Ltd. The deputy general manager, who declined to be named, said in an interview with reporters. It is understood that these agencies claim Xi'an Baorun concealed the related transactions between the company and the company's senior management and directors, allegedly distorts financial performance and business prospects, and has no substantial business activities. In a series of attacks from short-selling institutions, Nasdaq stopped Xi'an Baorun Trading on April 20, and was forced to withdraw from the market on June 15th, switching to a pink market with a lower credit rating and losing the main board market*. *Features. On the day of the pink market, Xian Baorun's closing share price fell to US$0.68, a 63% drop from the previous suspension.
“We are entrusting US third-party agencies to enter enterprises to conduct investigations and hire relevant auditors and lawyers to set up special committees to investigate and collect evidence, clarify facts, and provide shareholders and investors with a satisfactory answer.†Xi'an Baorun Industrial Development Co., Ltd. The deputy general manager said. He stressed that the experience of Chinese concept stocks should arouse the attention and attention of high-level government officials. It is recommended that powerful investment institutions use current low-cost opportunities to buy back Chinese concept stocks as soon as possible to help companies tide over the difficulties.
It is understood that, unlike China, the short-selling mechanism is normal in the U.S. capital market. If one bears a bearish stock, investors can sell short, and by selling a certain amount of shares to a third-party institution, they can sell at the current market price. When the stock price falls and then buys it back, the stock will go back and the difference will become profit. In other words, stocks may still make money when prices fall.
Shen Xiaoxu, Account Manager of Shaanxi Open Source Securities Co., Ltd. believes that it is not ruled out that certain institutions maliciously suppress Chinese concept stocks, and they may profit by short selling. However, Shen Xiaoxu said that relevant companies must also find reasons for themselves. Some companies have flaws in their financial accuracy and authenticity, and they are easily regarded as fraudulent or without substantial production and operation.
According to industry insiders, the overseas listing threshold is relatively low, and the formalities are convenient. Domestic enterprises are rushing and there are more than 270 Chinese concept stocks currently listed in the United States. However, the post-listing supervision is very strict, the annual maintenance cost is also expensive, and the information disclosure requirements are very high. Once fraud occurs, it will take high costs.
Obviously, since they are listed overseas, related companies must be familiar with and adapt to the local capital market rules of the game. In response to some enterprises’ short-selling on the risks of overseas listings, Wu Gang, deputy director of the Institute of Economic Research of the Shaanxi Academy of Social Sciences, said that overseas listing is a “double-edged sword†and SMEs must make adequate preparations. In the face of differences in language, legal rules, and high cost of rights protection, some small and medium-sized enterprises are often hurt. Small and medium-sized enterprises that lack strength, especially not enough internal strength, must be cautious.
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