China Stocks Get the Flu After RINO Intl (RINO) Discloses Fraud

A number of China-based stocks were brutalized today in the aftermath of the fraud disclosure at RINO International (Nasdaq: RINO). After being halted for three days, RINO said today that two of six contracts that a recent research report Muddy Waters pointed out were in fact not real. The auditor also said the financial reports at RINO can no longer be relied upon.

Some Chinese stocks with the same auditor - Frazer Frost - really got caught up in the RINO downdraft.

Harbin Electric Inc. (NASDAQ: HRBN) fell 11 percent today and China Valves Technology, Inc. (NASDAQ: CVVT) fell 15 percent.

Orient Paper Inc. (NYSE: ONP), which is also the target of a negative research report from Muddy Waters, fell 7 percent today.

While none of these companies have reported similar issues, investors are not taking any chances and selling shares.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Lettuce Grower Taylor Farms To Recall Products Tied To Outbreak - Bloomberg
• SpaceX (SPCX) Set To Wipe $1 Trillion From Peak Value After 38% Drop - Bloomberg
• Verizon planning new round of layoffs this week - Barron’s