US-Listed China Firms Fight Back — Finally 中国赴美上市公司最终还击

By newsdoug on September 27, 2011

China firms launch rare offensives in US confidence crisis US-listed China firms have taken a largely passive posture during the months-long scandal surrounding their credibility on Wall Street, but now I’m happy to see that at least a few are starting to fight back to defend their honor. Since the confidence crisis began earlier this year with an accounting scandal at financial software maker Longtop Financial, these companies, many of which never did anything wrong, have made a few reactionary moves, launching share buybacks and dividends and in occasionally offering explanations to fend off short sellers to defend their sinking shares. Now, one of the smaller firms, a silver mining company called Silvercorp Metals (NYSE: SVM) is taking a more aggressive stance, suing a web site called Chinastockwatch.com, for posting false information about it in an attempt to drive down its share price. (English article) Silvercorp is seeking $11 million in damages in the case, filed last week in New York, though Chinastockwatch is so far denying the allegations. I don’t know enough to comment too much, but I have to believe that Silvercorp, which undoubtedly knows little or nothing about the US legal system, must think it has a very strong case for it to proceed with this action. At the very least, this kind of more assertive move is likely to discourage any smaller short-sellers from taking advantage of the confidence crisis to try and punish individual Chinese companies by spreading false rumors. In the other development, AutoChina (Nasdaq: AUTC), an auto leaser in central China slated for delisting on the Nasdaq due to late filing of its annual report, has released an announcement showing it is aggressively appealing the decision, unlike many other Chinese firms that up until now have quietly accepted similar delistings. (company announcement) Of course, there’s no guarantee this appeal will be successful, and I suspect that ultimately AutoChina might be delisted despite this last-minute effort. But at least it’s trying to clear its name and, in the process, bring back some credibility to US-listed China stocks.

Bottom line: Two new efforts by Silvercorp and AutoChina to defend themselves against allegations of impropriety are a welcome effort to bring back confidence to US-listed China stocks.

面对会计丑闻在华尔街所引发的信任危机，中国赴美上市公司基本上采取了一种消极态度，但眼下至少有少数公司开始还击捍卫其声誉，这是我乐见的情形。自东南融通财务丑闻今年早些时候掀起在美上市中国概念股诚信危机以来，这些公司只是采取了少量应对措施，当中包括回购股票、派发股息和偶尔的解释，来阻止做空抛盘，保护股价下跌，但他们中的多数公司其实并无任何过错。眼下，有一家规模较小的、名为希尔威金属矿业(SVM.N)的公司正采取更积极的态度。该公司对Chinastockwatch.com网站提起诉讼，指控後者散播虚假信息试图压低其股价。希尔威上周在纽约提起诉讼，要求就所造成的损失赔偿1,100万美元，但Chinastockwatch迄今一直否认这些指控。我对此事了解不多，也不便过多评论，但我认为希尔威一定是认为自己有非常有利的证据，才会发起此项诉讼。此类积极举动至少可以打击规模较小的做空抛盘利用信任危机，通过散布虚假消息来打压个别中国公司股价。另一家公司开元汽车(AutoChina)(AUTC.O)因没有按时提交年报，将被从纳斯达克摘牌。该公司发表声明称，正在对摘牌决定进行积极上诉，这与许多其它默默接受摘牌的中国上市公司截然不同。当然，该公司上诉不一定能获胜，我认为开元汽车虽然进行这一努力，最终仍难免被摘牌。但至少该公司为挽回声誉进行了努力，这或许能为在美上市中国公司挽回一些信誉。

一句话：希尔威和开元汽车正对针对他们的不当行为指控作出还击，这是令人欢迎的举动，可为在美上市的中国股票赢回一些信心。