Deloitte is in the middle of another developing situation involving a Chinese stock and allegations of fraud. Douyuan Printing (DYP) disclosed in a regulatory filing on Friday that the Securities and Exchange Commission had launched a formal investigation into whether the company committed fraud by purposefully misstating financial results.
Regulators have been conducting the probe since October, Douyuan said in the filing. About a month earlier, the company fired Deloitte as its auditor after the firm had raised accounting red flags.
Global Hunter, meanwhile, is one of a number of investment banks who do a steady business in underwriting shares of Chinese small-cap companies. According to its web site, its clients have included Shengdatech (SDTH), Yuhe International (YUII) and China Agritech (CAGC), another Chinese small-cap company whose stock has been halted after the company dismissed its auditor, this time the China-based affiliate of Ernst & Young. Global Hunter didn't provide investment banking services to China MediaExpress.
-- Written by Scott Eden in New York
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