China RTO Stocks Slide After China Media Bombshell
(Chinese reverse merger article updated from March 15.)
NEW YORK (TheStreet) -- A day after China MediaExpress (CCME) revealed that its former auditor believes the company is worthy of an investigation into possibly dubious accounting practices, a handful of small-cap Chinese stocks sold off sharply on Tuesday.
Fraud allegations have buffeted share prices among these names since last year, as more of the investing public begins to doubt the integrity -- rightly or wrongly -- of financial statements emanating from the People's Republic.
Of course, on Tuesday, the nuclear crisis in Japan and the broad and vicious slide in equities around the world didn't help Chinese small-cap names.But more than a few of those stocks, most of which came public in the U.S. through a controversial process called a reverse merger, declined by more than 6% on heavy volumes during Tuesday's trading session. Many have been in the public eye before, accused of financial chicanery of one sort or another by short sellers.
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