According to an AP article, Chinese companies are pulling out of US stock markets amid complaints about price, and accounting scrutiny. This may include DEER, a NASDAQ small cap appliance maker I invested in earlier this year.
This was my first foray into the Chinese market. Perhaps my last if politics and attacks from short sellers are the norm.
To assist with making US markets whole the article reports that an unnamed Chinese business magazine said a state bank has provided $1 billion in loans to help companies with listings abroad move them to domestic exchanges.
The withdrawals follow accusations of improper accounting by some companies and a deadlock between Beijing and Washington over whether U.S. regulators can oversee their China-based auditors.
DEER may be pulling out of U.S. markets because their low share price fails to reflect the strength of their business. Withdrawing also will save DEER money because it eliminates the high cost of complying with the SEC.
DEER continues to be under attack by Alfred Little. In his most recent article, “Deer Consumer Products Shares Halted After Factories Idled” he continues to accuse DEER of lying to it’s investors.
DEER had filed a lawsuit against Alfred Little earlier this year. There was a motion to dismiss that lawsuit in the latest 10Q from the company, other than that no other information is available about DEER and its lawsuit against Mr. Little.
Mr. Little shows photos of a closed facility he claims is DEERs. I asked, “What if DEER has a second facility? DEER claims it no longer does non-domestic manufacturing and is totally focused on the domestic market. It would be logical to shut down a facility.”
As of this writing Mr. Little has failed to respond.