Bigtime Investors Lose Big on China
The gigantic investment manager Wellington Management has made some pretty hefty bets on a number of Chinese stocks that are now halted or delisted. The firm built an 8.2% stake in China-Biotics, the yogurt-culture company in Shanghai, despite the fact that China-Biotics had spent the previous year defending itself against report after report by short-sellers and the Chinese media alleging that the company isn't what it says it is.
The Nasdaq exchange halted trading in China-Biotics last week after it failed to meet the deadline for filing a 10-K report with the SEC.But it doesn't stop there for poor Wellington, a spokesman for which declined to comment. The firm holds 5% of Jiangbo Pharmaceuticals (JGBO), whose shares have been halted since May 31; 3.7% of Yuhe International (YUII), a provider of "day-old chickens" whose shares were halted on June 17; and 2.2% of Puda Coal (PUDA), whose shares were halted on April 11. Wellington also recently unloaded an 800,000-share position in China Electric Motor (CELM), a company whose auditor resigned after finding alleged irregularities. CELM was delisted by Nasdaq earlier this month.
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