Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : The Hartcourt Companies, Inc. (HRCT) -- Ignore unavailable to you. Want to Upgrade?

To: SinoKnowledge who wrote (1710)	1/10/2001 9:31:02 AM
From: StockDung	Read Replies (1) \| Respond to of 2413

Still goes to a NICKEL in my opinion. CHEERS CHUMPS!!

To: SinoKnowledge who wrote (1710)	1/10/2001 9:36:13 AM
From: StockDung	Respond to of 2413

China Investigates 2000's Costliest Stock for Fraud Shenzhen, Jan. 10 (Bloomberg) -- China's regulators said they're probing last year's most expensive stock on suspicion it was manipulated by a group of investors, moving to deflect criticism they've been too lax with a market often portrayed as little more than a casino. An official at the Chinese Securities Regulatory Commission said the regulator is investigating shareholders of Shenzhen- listed Yorkpoint Science & Technology Co. Its shares surged 98 percent in the first six weeks of last year to 126.30 yuan, or 167.3 times expected earnings, at the time the highest ratio of any Chinese company since markets were revived a decade ago. China faces a delicate balancing act as it moves to temper excesses in its stock markets while avoiding a crash that would wipe out the savings of thousands of investors. It's a tall order: More than two dozen companies now carry higher price-earnings ratios than Yorkpoint did last February. ``That these shares can so easily be manipulated shows the authorities haven't set up enough standards to protect the interest of small investors,'' said Yao Maogong, chief trader at Shanghai International Trust & Investment Corp. Stock markets in Shanghai and Shenzhen are home to the world's best-performing indexes last year even though many companies are unprofitable. Shanghai Tyre & Rubber Co., whose stock tripled last year, warned today of a ``substantial'' loss for 2000, its second annual loss. `Sham Trading' Five other state-owned companies are ``noteworthy'' because their shares moved ``contrary to the companies' performances,'' the Shanghai Securities News reported today. Although the CSRC official said she wasn't aware of probes into the five companies, the newspaper is one of three used by regulators to distribute official announcements. Regulators last conducted a major probe into insider trading in 1998, when government auditors discovered 1 billion yuan ($120 million) missing from the accounts of J&A Securities Co., then the nation's biggest brokerage. J&A was later merged with China Guotai Securities Co. Under Chinese law, insider trading and market manipulation -- called ``sham securities trading'' by the law -- are punishable by a fine equal to the gains from the transactions. Jail sentences are not specified under the law. On average, less than 400,000 shares of Yorkpoint, a maker of telecommunications equipment that also leases real estate, changed hands every day last year, making it easy for a small number of traders to boost its prices, traders said. Cozy Trading Tightly held stocks such as Yorkpoint are often traded among a close-knit group of dealers at high prices, then sold to retail investors who are attracted to the stock, Shanghai Securities reported. The five Shenzhen-listed companies named by the newspaper are: Laiwu Steel Corp, Shanghai Zhongxi Pharmaceutical Co., Shanghai Broadband Technology Co., Shenzhen China Venture Capital Co. and Stone Group High-Technology Group Co. China Venture Capital, whose shares fell by the daily 10 percent limit for 14 days, surged limit-up today on speculation regulators dropped their probe into trading of its shares. CSRC officials said they're unaware of any investigations on China Venture Capital. ``We have been summoned to the CSRC's Shenzhen office,'' said Zhu Wenxue, China Venture Capital's spokesman. ``But we don't know whether CSRC is probing us or it has dropped of an investigation.'' The newspaper report also listed a number of companies whose major shareholders are brokerages that are themselves active traders of the shares. The newspaper didn't say whether the companies are the targets of investigation. Citic Securities Co., a brokerage owned by China's biggest investment firm, China International Trust & Investment Corp, often trades shares of companies in which it has an interest, including Tsinghua Tongfang Co. and China Great Wall Computer Shenzhen Co., the paper said. Citic officials could not be reached to comment. Tsinghua officials declined comment. Jan/10/2001 5:32 ET For more stories from Bloomberg News, click here. (C) Copyright 2000 Bloomberg L.P.