Providing investors with the
tools to make informed decisions.
Providing investors with the
tools to make informed decisions.
 Tracking 1268 U.S. listed China Stocks and Counting...
 Tracking 3162 U.S. Stocks and Counting...
Created: 01-Jan-2008

Extra Insight into some of the more controversial issues surrounding China Companies

  • Yesterday, 9:30 AMmore... 
    Cninsure Inc. (NASDAQ:CISG) announced that it has entered into share purchase agreements with companies established on behalf of the employees of the Company for the issuance of up to 100,000,000 ordinary shares (5 million ADS) of the Company, representing approximately 10% of the Company's current total outstanding share capital, for a purchase price of $0.27 per ordinary share or $5.40 per ADS, which is the average closing price for the 20 trading days prior to the board approval on November 27, 2014.
  • Yesterday, 9:30 AMmore... 
    China Xiniya Fash (NYSE:XNY) announced that it will change the ratio of its American depositary shares to ordinary shares, per share from 1:4 to 1:16. The effective date of the Ratio Change is expected to be on December 17, 2014.
  • Yesterday, 9:30 AM 
    Sino Gas Intl Hld (PINK:SGAS) announced the completion of the merger contemplated by the previously announced Agreement and Plan of Merger. 
  • Yesterday, 9:30 AM 
    Xinyuan Real Esta (NYSE:XIN) announced that the company recently acquired two land parcels in Wuqing District, Tianjin, through public auction.
  • Wednesday, November 26, 2014, 02:30 PMmore... 
    Pacific Health Ca (PINK:PFHO) announced this afternoon that it will be implementing a share repurchase program that has allocated $500,000 for purchasing common stock. Based on today’s share price, this amounts to about 13,500 shares of the company’s common stock, representing about 8% of the current float, which was last recorded at 167,220 shares. We have added to our long position. 
  • Tuesday, November 25, 2014, 09:30 PMmore... 
    Highpower Interna (NASDAQ:HPJ) announced that two of the Company's wholly-owned subsidiaries, including its new lithium battery facility, have received Sony's Green Partner Certification.
  • Tuesday, November 25, 2014, 09:30 AMmore... 
    Chinacache Intern (NASDAQ:CCIH) announced that it has formed a strategic partnership with Aspera to provide best-performance high-speed data transmission services for large files. Aspera, an IBM company, developed the technologies that move the world's data at maximum speeds.
  • Monday, November 24, 2014, 09:30 AMmore... 
    GeoBargain on the radar Igi Laboratories (NYSE AMEX:IG) announced that it has submitted an additional abbreviated new drug application (ANDA) to the FDA. 
  • Monday, November 24, 2014, 09:30 AMmore... 
    China Information (NASDAQ:CNIT) announced contracts for installation of 10,000 new media elevator terminals in Jiangxi Province. 
  • Monday, November 24, 2014, 09:30 AM 
    Canadian Solar In (NASDAQ:CSIQ) completed the sale of 28.4 MW solar plant in the U.S. 
  • Monday, November 24, 2014, 09:30 AM 
    Yingli Green Ener (NYSE:YGE) signed a landmark agreement to power Europe’s largest solar plant.
  • Friday, November 21, 2014, 09:00 AM 
    MOXCE now trades as Moxian China Inc (OTC BB:MOXC).
  • Friday, November 21, 2014, 09:00 AM 
    MOXCE now trades as Moxian China Inc (OTC BB:MOXC).
  • Thursday, November 20, 2014, 09:30 AMmore... 
    Advanced Battery (PINK:ABAT) announced the company and Mr. Zhiguo Fu, Chairman and CEO of Advanced Battery Technologies Inc. plan to buy back up to 5 million ABAT common shares over the next 12 months.
  • Thursday, November 20, 2014, 09:30 AMmore... 
    Gigamedia Limited (NASDAQ:GIGM) announced that its CEO continued to purchase a total of 131,938 shares of the company’s stock at an average price of $1.03 during the period between October 28, 2014 and October 31, 2014.
  • Thursday, November 20, 2014, 09:00 AM 
    CLADD now trades as China Liaoning Di (OTC BB:CLAD).
  • Thursday, November 20, 2014, 09:00 AM 
    VVTV now trades as Evine Live Inc. (NASDAQ:EVLV).
  • Thursday, November 20, 2014, 09:00 AM 
    MOXC now trades as "" (OTC BB:MOXCE).
  • Thursday, November 20, 2014, 09:00 AM 
    VVTV now trades as Evine Live Inc. (NASDAQ:EVLV).
  • Thursday, November 20, 2014, 09:00 AM 
    CLADD now trades as China Liaoning Di (OTC BB:CLAD).
more GeoAlerts...
Comming Soon
Comming Soon
Comming Soon
Board Tips & Tricks: (View All)
  • After you subscribe to a Board, use the boards drop down menu at top of page to see it listed in your Favorite Boards screen.
  • You can click the number in parentheses next to a username in order to see all GeoInvesting messages posts by that user.
  • In message lists, use the orange arrow at the right to expand the messages for quick reading.
  • You can direct your posts towards certain users in the "Send as Alert to User(s)" field when composing a post. The message will be forwarded to their GEO inbox and real email.
  • Categorize your posts!!! There are 10 different kinds of post types. We will all then be able to filter all message lists by post type.
  • Search the boards by stock symbol, user name, or just in general. You will be given those options when entering text in the search field.
  • Place a $ in front of symbols in your posts. The stock name and exchange will then be included. (example: $CCME) This is also helpful when tweeting the message since aggregators such as stock twits will pick it up.
Zon4Ever 02-Dec-2010 09:35 AM
Post Type: Public Public
by Maj Soueidan As indicated in my recent article, Limit Risk While You Invest in ChinaH (#4746) 02-Dec-2010 09:35 AM

by Maj Soueidan

As indicated in my recent article, Limit Risk While You Invest in ChinaHybrids (U.S. Listed Chinese Stocks),  I track daily new highs in an attempt to identify momentum value plays.  A trend I have noticed is that even as the RTO stocks have once again corrected many ADRs, some with premium multiples are attaining new 52 week highs. Short investors have asserted that ADRs are of higher quality than their RTO counterparts and that their PRC filings match SEC filings.

ADR/ADS stocks listed on major exchanges that attained 52 new highs even as the Chinese RTO space has pulled back:

51 Job Adr (NASDAQ:JOBS)
China Digital Tv Holding Adr (NYSE:STV)
7 Days Group Holdings Adr (NYSE:SVN)
Global Sources (NASDAQ:GSOL)
China Techfaith Wireless Adr (NASDAQ:CNTF)
3 Sbio Inc Ads (NASDAQ:SSRX)
Hollysys Automation Tech (NASDAQ:HOLI)
Fabrinet (NYSE:FN)
China Yuchai Intl (NYSE:CYD)

A couple well-followed RTO stocks have recently attained new highs:

Lihua Intl (NASDAQ:LIWA)

The following stocks on the BB have recently attained new highs, most on light volume:

China Electronics (OTC BB:CEHD)
Horiyoshi Worldwide (OTC BB:HHWW)
Shun Cheng HK (OTC BB:BRBH)
Zhongchai Machinery (OTC BB:EQPI)
China Agri-Business (OTC BB:CHBU)
Gfr Pharmaceuticals (OTC BB:GFRP)
Sino Oriental (OTC BB:SMPN)
China Shesays Med (OTC BB:CSAY)
Jinhao Motor Co Common (OTC BB:GIMC)
Asia Pacific Wire & Cabl (OTC BB:AWRCF)

I also like to observe stocks that are within striking distance of a 52 week new high. One such RTO stock caught my attention due to the fact that it sports a trailing P/E multiple of over 20 that most RTO stocks would kill for.  I was obviously excited, thinking that the market had placed its quality stamp of approval on Kingold Jewelery (NASDAQ:KGJI).  Shares have risen from a 52 week low of $0.56 to $8.87, off its high of $11.95 in August 2010.

The company also claims to be the leader in its industry:

"Kingold Jewelry, Inc. is one of the leading professional designers and manufacturers of gold jewelry in the central part of China including Hubei, Hunan, Henan, Jiangxi, Anhui and Sichuan Provinces. According to statistics provided by Gems and Jewelry Trade Association of China, KGJI ranked first and second in the PRC's gold industry nationwide in total volume of production in 2007 and 2006, respectively."

As a precaution, I now run many of my potential ChinaHybrid stock selections through my Chinese attorney I call "Bob" in order to respect his privacy. Recall that Bob was instrumental in my article, The SEC vs SAIC Fact Finding Mission, published on August 25, 2010.  I asked Bob if he was aware of KGJI.  He was, and the news was quite interesting.

Bob writes:

KGJI tried to list in Shenzhen stock exchange in China in 2008.  However, it was rejected by China Securities Regulatory Commission on Aug 4th. 2008 ( 

KGJI planned to sell 33,340,000 shares which would have equated to 25% of the total shares after the planned IPO.  The book value per share before the IPO is RMB 1.59 yuan. As the IPO is rejected by China Securities Regulation Commission, we do not know what the planned price was. However, if we assume KGJI would have applied a 20 P/E (China market has a high P/E), the price shall be around RMB 0.30 per share.

Translation from CSRC site:

"China Securities Regulatory Commission, the Audit Committee issued its 115th meeting in 2008 at the August 4, 2008 meeting, the meeting reviewed the results now announced as follows: Wuhan Golden Phoenix Jewelry Co., Ltd. is not approved."

I am 100% percent sure this KGJI Wuhan Golden Phoenix Jewelry are one the same. Wuhan Golden Phoenix Jewelry has the same address, same legal representative and financial statements as well. In its prospectus submitted to CSRC, KGJI applied its English name as "Kingold Jewelry" on the cover which is the same as KGJI. Wuhan Golden Phoenix Jewelry is the direct translation of its Chinese name. When you say the logo of KGJI, it is a golden phoenix.

Bob goes on to comment:

The media reported that possible reasons for the rejection dealt with falsified financial books.  There were several reasons applied to challenge the prospectus submitted to China Securities Regulatory Commission (CSRC) by KGJI (Prospectus: 

At first, it has been speculated that the company intentionally increased (forged) the value in its asset appraisal report for machinery and raw materials invested by Zhihong Jia, CEO, in 2004. Secondly, the increase of the revenues from 2006 to the first season of 2008 was challenged.   Thirdly, it has been speculated that suspicious share transactions from Zhihong Jia to other shareholders existed.  (

I read the prospectus of KGJI in China (2008), the reverse merger documents and its S-1.  Apparently, the annual increase rate of revenue of KGJI is more than 100% for three years.  The Chinese media challenged the increase in 2008.  The financials in the PRC prospectus, reverse merger documents and the S-1 match, so the company used the same filings submitted to the CSRC.  Now, we need to figure out more details in 2010.

To be clear, the CRSC did not mention that it rejected the application for the IPO due to fraud allegations.

In addition to Bob’s findings and with help from a new due diligence panel I have assembled, I have provided the following information that investors may find useful:

  • It looks like the Company will tap the equity market, as determined by a recently amended S-1 and a blurb in the 2010 third quarter 10Q -

“We expect that cash generated from financing activities may increase significantly as a result of additional financing being obtained.”

We will continue our probe into the KGJI story in order to confirm or refute fraud allegations.  From the strong possible pricing indicated in the S-1 it appears that investors have given a vote of confidence. We welcome input from investors.

   Reply  |  Private Reply
Related Stocks
Post Type