Muddy Waters Blasts New Oriental for Massaging Accounts
New Oriental Education & Technology Group Inc (NYSE: EDU), a leading Chinese provider of test preparation courses, has been accused by Muddy Waters of making fraudulent accounts. The short seller alleged that New Oriental had lied about its network by covering up the number of its franchisees and had used upfront franchise and other fees to spruce up its cash balances. Nearly $2 billion has been wiped off New Oriental's market value since Monday. The US SEC is probing the company's finances.
LDK Solar Denies to Be Nationalized
LDK Solar Co (NYSE: LDK), a leading Chinese photovoltaic manufacturer, will not be nationalized, spokesman Li Longji said in response to news that a local government in Jiangxi province would continue to inject cash into the company to repay its loans. LDK is on the brink of bankruptcy as shown by its latest financial statements. It posted $200 million in revenues and $185 million in losses for Q1 2012 after industry-wide overcapacity deflated prices across the entire solar supply chain.
Shenhua Energy to Kick Off ¥25b Chongqing Projects
China Shenhua Energy Co (SHA: 601088, HKG: 1088), the nation's biggest coal producer, will begin building six 1,000MW coal-fired power plants and a warehouse capable of storing 30 million tons of coal in Chongqing by the end of July. The projects are estimated to cost a total of ¥25 billion.
China Shipping Forecasts Loss for 1H
China Shipping Development Co (HKG: 1138) said it expects a net loss for 1H 2012 due to weak demand for shipping services, lower shipping rates and rising crude oil prices. The company posted a ¥684 million net profit in 1H 2011.
China CNR Wins ¥3.5b Deals
China CNR Corp (SHA: 601299), a leading train maker, said it recently signed ¥3.49 billion worth of contracts.
$1 = ¥6.31