Salient to Investors:
Carson Block at Muddy Waters said he stopped betting against Chinese companies this year after government agents hindered his analysts and harassed workers at his storage company in Shanghai. Block says China is protecting frauds by making it difficult to research short sale candidates, and has used intelligence and police agencies to deter his company and employees from continuing to do research in China. Block said Singapore is not a thugocracy.
Timothy Ghriskey at Solaris Group said Block has been the most vocal and public about the accounting problems with US-listed Chinese companies. Sahm Adrangi at Kerrisdale Capital Mgmt said the Carson Block model of very detailed reports has set a new standard in terms of writing and sharing research. James Rickards at Tangent Capital Partners said Block is looking at the crime in progress.
The SEC accused affiliates of the four biggest accounting firms of refusing to produce documents for investigations into client financial disclosures.