Tuesday, June 12, 2012

Hedge Fund Researchers Looking Into Chinese Companies Are Being Arrested By The Chinese Government






Shocking?  Surprising?  Not.  Authorities in China have arrested, harassed or investigated researchers looking into possible fraud by Chinese companies traded on American stock exchanges, the Tribune-Review has learned.

Two major American promoters of Chinese stock -- New York Global Group and Global Hunter Securities -- say the Chinese Ministry of State Security has arrested investigators that U.S. firms hired to verify information about companies in the People's Republic of China. The fate of those arrested is unknown.

Their allegations about law enforcement actions toward researchers are supported by at least one Chinese mining company, Silvercorp Metals Inc., which reported that U.S.-led researchers have questioned its accounting books.

Two American hedge funds, Absaroka Capital Management LLC and EOS Holdings LLC, also reported their researchers in China were arrested and/or threatened with death by thugs, police or both. The status of the Absaroka researchers is uncertain; three EOS workers were arrested and detained for five days. Though all three were released, two of them are under government-imposed travel restrictions.
http://triblive.com/home/1944315-74/chinese-china-shan-american-arrested-companies-researchers-company-global-hedge

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