Reverse Merger Chinese-based Companies to Caution
There have been quite a few Chinese frauds exposed in the past 6 months – many of these were listed on U.S. markets via reverse mergers. Essentially this is an old shell of a listing that an existing company can move into – sort of like when crab sheds its old shell and moves into better digs. Many of these companies have been exposed by a handful of firms who specialize in shorting (i.e. the Muddy Waters types).
Bloomberg has a list of all Chinese reverse mergers so one can assume someone at these handful of firms is looking into each and every one. I am sure some babies will get thrown out with the bathwater but I would not go near these with your 10 foot pole, since waking up one morning to a -80% return is not my cup of tea. In full disclosure I’ve spoken (and been bullish) on a few of these over the past 3-4 years. The extent of fraud from the Chinese has been a bit stunning to me – I guess being like Enron is cool.
The following companies are based in China and gained listings on U.S. exchanges after conducting reverse mergers, in which a publicly traded shell corporation is purchased, according to data compiled by NYSE Euronext (NYSE:NYX). Stocks that have been delisted from the Nasdaq Stock Market (NASDAQ:NDAQ), NYSE Amex or New York Stock Exchange have been omitted.
The Securities and Exchange Commission cautioned investors on June 9 about buying stakes in Chinese-based companies when they gain listings through reverse mergers, avoiding the regulatory and investor scrutiny of initial public offerings.
NAME TICKER EXCHANGE AgFeed Industries (NASDAQ:FEED) US Nasdaq American Lorain (AMEX:ALN) US NYSE Amex Aoxing Pharmaceutical (AMEX:AXN) US NYSE Amex A-Power Energy Generation Systems (NASDAQ:APWR) US Nasdaq AutoChina International (NASDAQ:AUTC) US Nasdaq Biostar Pharmaceuticals (NASDAQ:BSPM) US Nasdaq China Armco Metals (AMEX:CNAM) US NYSE Amex China Auto Logistics (NASDAQ:CALI) US Nasdaq China Automotive Systems (NASDAQ:CAAS) US Nasdaq China BAK Battery (NASDAQ:CBAK) US Nasdaq China Biologic Products (NASDAQ:CBPO) US Nasdaq China Botanic Pharmaceutical (AMEX:CBP) US NYSE Amex China Cablecom Holdings (NASDAQ:CABL) US Nasdaq China Ceramics (NASDAQ:CCCL) US Nasdaq China CGame (NASDAQ:CCGM) US Nasdaq China Finance Online (NASDAQ:JRJC) US Nasdaq China Fire & Security Group (NASDAQ:CFSG) US Nasdaq China GengSheng Minerals (AMEX:CHGS) US NYSE Amex China Gerui Advanced Materials Group (NASDAQ:CHOP) US Nasdaq China HGS Real Estate (NASDAQ:HGSH) US Nasdaq China Housing & Land Development (NASDAQ:CHLN) US Nasdaq China Information Technology (NASDAQ:CNIT) US Nasdaq China Infrastructure Investment (NASDAQ:CIIC) US Nasdaq China Jo-Jo Drugstores (NASDAQ:CJJD) US Nasdaq China Marine Food Group (AMEX:CMFO) US NYSE Amex China Natural Gas (NASDAQ:CHNG) US Nasdaq China North East Petroleum Holdings (AMEX:NEP) US NYSE Amex China Nutrifruit Group (AMEX:CNGL) US NYSE Amex China Pharma Holdings (AMEX:CPHI) US NYSE Amex China Recycling Energy (NASDAQ:CREG) US Nasdaq China Ritar Power (NASDAQ:CRTP) US Nasdaq China Shen Zhou Mining & Resources (AMEX:SHZ) US NYSE Amex China Shengda Packaging Group (NASDAQ:CPGI) US Nasdaq China Shenghuo Pharmaceutical Holdings (AMEX:KUN) US NYSE Amex China Sky One Medical (NASDAQ:CSKI) US Nasdaq China TransInfo Technology (NASDAQ:CTFO) US Nasdaq China Valves Technology (NASDAQ:CVVT) US Nasdaq China XD Plastics (NASDAQ:CXDC) US Nasdaq China Yida Holdings (NASDAQ:CNYD) US Nasdaq China-Biotics (NASDAQ:CHBT) US Nasdaq ChinaCast Education (NASDAQ:CAST) US Nasdaq ChinaNet Online Holdings (NASDAQ:CNET) US Nasdaq Cleantech Solutions International (NASDAQ:CLNT) US Nasdaq Cogo Group (NASDAQ:COGO) US Nasdaq Deer Consumer Products (NASDAQ:DEER) US Nasdaq Dehaier Medical Systems (NASDAQ:DHRM) US Nasdaq Ever-Glory International Group (AMEX:EVK) US NYSE Amex Feihe International (NYSE:ADY) US NYSE Fuwei Films Holdings (NASDAQ:FFHL) US Nasdaq General Steel Holdings (NYSE:GSI) US NYSE Guanwei Recycling (NASDAQ:GPRC) US Nasdaq Gulf Resources (NASDAQ:GFRE) US Nasdaq Harbin Electric (NASDAQ:HRBN) US Nasdaq Highpower International (NASDAQ:HPJ) US Nasdaq Hollysys Automation Technologies (NASDAQ:HOLI) US Nasdaq Jiangbo Pharmaceuticals (NASDAQ:JGBO) US Nasdaq Jingwei International (NASDAQ:JNGW) US Nasdaq Jinpan International (NASDAQ:JST) US Nasdaq Kandi Technologies (NASDAQ:KNDI) US Nasdaq Keyuan Petrochemicals (NASDAQ:KEYP) US Nasdaq Kingold Jewelry (NASDAQ:KGJI) US Nasdaq Longwei Petroleum Investment Holding (AMEX:LPH) US NYSE Amex New Energy Systems Group (AMEX:NEWN) US NYSE Amex NF Energy Saving (NASDAQ:NFEC) US Nasdaq NIVS IntelliMedia Technology Group (AMEX:NIV) US NYSE Amex Orient Paper (AMEX:ONP) US NYSE Amex Origin Agritech (NASDAQ:SEED) US Nasdaq Orsus Xelent Technologies (AMEX:ORS) US NYSE Amex Puda Coal (AMEX:PUDA) US NYSE Amex QKL Stores (NASDAQ:QKLS) US Nasdaq Shengkai Innovations (NASDAQ:VALV) US Nasdaq Shiner International (NASDAQ:BEST) US Nasdaq Sinohub (AMEX:SIHI) US NYSE Amex Sinovac Biotech (NASDAQ:SVA) US Nasdaq SkyPeople Fruit Juice (NASDAQ:SPU) US Nasdaq Skystar Bio-Pharmaceutical (NASDAQ:SKBI) US Nasdaq SmartHeat (NASDAQ:HEAT) US Nasdaq SORL Auto Parts (NASDAQ:SORL) US Nasdaq Sutor Technology Group (NASDAQ:SUTR) US Nasdaq Telestone Technologies (NASDAQ:TSTC) US Nasdaq THT Heat Transfer Technology (NASDAQ:THTI) US Nasdaq Tianli Agritech (NASDAQ:OINK) US Nasdaq Tianyin Pharmaceutical (AMEX:TPI) US NYSE Amex Tiens Biotech Group (AMEX:TBV) US NYSE Amex Winner Medical Group (NASDAQ:WWIN) US Nasdaq Wonder Auto Technology (NASDAQ:WATG) US Nasdaq Wuhan General Group China (NASDAQ:WUHN) US Nasdaq Yongye International (NASDAQ:YONG) US Nasdaq Yucheng Technologies (NASDAQ:YTEC) US Nasdaq Yuhe International (NASDAQ:YUII) US Nasdaq Zhongpin (NASDAQ:HOGS) US Nasdaq Zoom Technologies (NASDAQ:ZOOM) US Nasdaq
This is a guest post written by Trader Mark who runs the blog Fund My Mutual Fund.