Harbin Electric (NASDAQ:HRBN)

My friend recently visited China, and found that the banks now are only lending to state owned companies. His home town has lots of non-state owned private business that are forced to close because the banks are refusing to lend to them anymore. 

Right now China is rampant with business jumbo loans with annual interest of 60%. The non-state owned companies are forced to choose to either take these kinds of loans or liquidate.

HRBN is a non-state owned company, so it is impossible to obtain a loan of even a small amount, not to say $400 Million. That is just a joke. Given the past fraudulent loan history of the chairman, it is pretty clear to me that the deal will break up soon due to some random unexpected reasons.

Good luck to all longs who didn't do their home work.