NEW YORK ( TheStreet) -- I have some very good news. The problem of Chinese stock fraud is over. You'll be delighted to learn that Chinese companies whose accounting has come into question have found a solution to whatever may ail them. All you have to do is believe in the infallibility of Big Four auditors!
Yep, I'll bet you guessed there was a catch.
Oh, sure, we know that the Securities and Exchange Commission is probing stock fraud by Chinese companies, and that short-sellers have been targeting these stocks, citing their supposedly shady accounting. So that's why I was so impressed by a statement that sallied forth recently from a Chinese company that has attracted attention from short sellers, China MediaExpress Holdings. The company's stock plummeted because of concerns about its accounting. Concerns that are utter rubbish, I might add, if you believe the CEO.
Responding to allegations that the company is a "fraud and reported revenue is exaggerated by tens of millions of dollars," China Media's CEO Zheng Cheng said in a letter to shareholders: "The company is strong and doing well. Its revenues and cash position have been audited by
reputable and well-known auditors who have confirmed both."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV