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."
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