Carson Block’s Op-Ed in the WSJ on “China’s Auditing Train Wreck”

3 Responses to Carson Block’s Op-Ed in the WSJ on “China’s Auditing Train Wreck”

  1. comment author avatar

    of last year, Muddy Waters issued a research report on Spreadtrum Communications, a Shanghai-based designer for wireless communications chips. Muddy Waters reported that it expected “a high risk of material misstatements” in Spreadtrum’s financial reporting, citing a six-fold surge in inventory in 2010. Muddy Waters also questioned why then Chief Executive Officer Ping Wu and Chief Financial Officer Richard Wei left the company months before it reported 137% revenue growth in the third quarter of 2009 over the previous quarter. The company’s shares tumbled as much as 34% in the first day after the report was released. However, Spreadtrum’s stock price is now trading at $14.11 — up 5% from the day before the Muddy Waters report was released.

  2. comment author avatar

    Didn’t realize they stopped allowing outside investors to look at the SAIC filings. Curious.

    The link you have listed on your site is wrong. If you click on the link to “http://online.wsj.com/article/SB10001424052702304746604577381630586235646.html” it takes you to “http://online.wsj.com/article/SB10001424052702304746604577381630586235646.htmlhttp://” — that extra “http://” needs to be removed.

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