Bronte Capital hints at Chinese frauds in HK

[kazukirai]

Hi Buddies,

John Hempton of Bronte Capital has come out to say that he is looking at lemon China Stocks listed on the Hong Kong Stock Exchange. (link here)

Bronte Capital, as far as I can tell from the postings on the blog, is a hedge fund that has gained some fame for doing expose(s) on US listed China basketcases. Some examples include longtop financial and CCME amongst others. Of course, Muddy Waters has gained much more fame with the Sino-forest incident but Bronte Capital seem to have their fair share of experience in uncovering China companies that are not what they say they are.

All in, it remains to be seen if Bronte digs up anything. If they do, I think it's safe to say that the impact will be wider felt than the Sino-forest incident. All buddies holding on to any of the more speculative HK-listed China co. or even the S-chips might want to follow the issue a little more closely.

[soros]

Hi Buddies,

John Hempton of Bronte Capital has come out to say that he is looking at lemon China Stocks listed on the Hong Kong Stock Exchange. (link here)

Bronte Capital, as far as I can tell from the postings on the blog, is a hedge fund that has gained some fame for doing expose(s) on US listed China basketcases. Some examples include longtop financial and CCME amongst others. Of course, Muddy Waters has gained much more fame with the Sino-forest incident but Bronte Capital seem to have their fair share of experience in uncovering China companies that are not what they say they are.

All in, it remains to be seen if Bronte digs up anything. If they do, I think it's safe to say that the impact will be wider felt than the Sino-forest incident. All buddies holding on to any of the more speculative HK-listed China co. or even the S-chips might want to follow the issue a little more closely.

Not only china mainland stocks, even some Hong Kong stocks are lemons. Best to check up their 5 years performance record before you leap into the stock on a blind tip.