There was an interesting trend occurring in the markets that we are seeing during early morning action and throughout the day. Several Chinese stocks are getting slammed. It is thought that the malfeasance suspected (so it was reported) that may be showing up from Fuqi (FUQI).
“China growth names appear to be weak on FUQI’s malfeasance”
Symbols that are also showing weakness: (CAGC) (RINO) (HEAT) (CAAS) (TSTC)
The real question is whether this is anything more than a real accounting matter or something more. Further, is this a buying opportunity for the companies other than Fuqi? If history is any guide, it should be as most of these events turn out to be nothing more than great profit opportunities.