NEW YORK (TheStreet) - As the president of an auditing firm closely tied to Chinese companies traded in the U.S., Hamid Kabani faces a steady attack from short sellers hell-bent on proving conspiracy theories all about cooking the books.Short sellers thrive on bad news, selling stock they have borrowed in hopes they can buy the shares back at a lower price and pocketing the difference. In many cases, they try to drive stocks lower by digging up dirt on the companies. They can be helpful as unofficial watchdogs, but clearly have an ax to grind, and are not infallible. Kabani says criticism of his company is unfounded and unfair. "This is a one-sided view that paints everyone relating to China as a villain," Kabani says. "Our problem is that we are in professional services. We don't want to start a mudslinging game with
The PCAOB's Fight Is HamperedInvestors hoping that the PCAOB will ride to their rescue in China may have a longer wait. Of late, the agency's role has grown more complex, and perhaps less transparent, thanks to intervention by the SEC.
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