China Business Knowledge

Senator Arlen Specter Clarifies for Media His Motive for Representing CleanTech Innovations in Nasdaq Discrimination Lawsuit

Ted Glass — Thu, 16 Feb 2012 03:50:35 +0000

When CleanTech Innovations Inc. (OTC QB: CTEK, formerly Nasdaq), announced in late January that is was suing Nasdaq for racism and discrimination in regard to its delisting, people were surprised to find former U.S. Senator Arlen Specter serving as counsel for the company. CBK reached out to Specter’s office for a comment and received the following letter which has been distributed to the media.

Newsbriefs, Feb. 10, 2012

jstites — Tue, 14 Feb 2012 23:33:59 +0000

[Originally published Feb. 10, 2012, in CBK's email newsletter "Week in Review".]

NEWSBRIEFS

SEC NEWS

SEC Small & Emerging Companies Committee Hosts Public Meeting

The SEC Advisory Committee on Small and Emerging Companies held an open meeting on Feb. 1, in its Washington D.C. offices to discuss potential recommendations to the Commission on issues relevant to small and emerging companies and hear presentations on the report of the IPO Task Force, “Rebuilding the IPO On-Ramp,” which was presented to the U.S. Department of the Treasury in Oct. 2011. The meeting was webcast and is available for viewing on the SEC’s site: http://www.sec.gov/news/otherwebcasts.shtml. (CBK has not had an opportunity to watch, but will do so and report more on the meeting next week).

The Advisory Committee was formed last year to provide a formal mechanism for the SEC to receive advice and recommendations on privately held small businesses and publicly traded companies with a market capitalization less than $250 million. For more information, visit: http://www.sec.gov/info/smallbus/acsec.shtml. (Press Rel. 2012-19).

Ten China-based/U.S. Listed Companies Receive Trading Suspension
The U.S. Securities and Exchange Commission announced the temporary suspension of trading in for the following five companies because they have failed to file various reports with the SEC. The securities of the following issuers, commencing at 9:30 a.m. EST on February 2, 2012 and terminating at 11:59 p.m. EST on February 15, 2012:

China Display Technologies, Inc. (OTN: CDYT)
China Wind Energy, Inc. (OTN:CWEY)
Greater China Media & Entertainment Corp. (OTN: GTCN)
China Bottles Inc. (OTN: CBTT)
Long-e International, Inc. (OTN: LOGE)
Nano Superlattice Technology Inc. (OTN: NSLT)
Beicang Iron & Steel Inc. (OTN:
Along Mobile Technologies, Inc. (AGMB)
China Yingxia International, Inc. (OTN:CYXI)

In regard to Along Mobile and China Yingxia, the SEC requests that if any broker, dealer or other person has any information which may relate to this matter, they should immediately communicate it to the Delinquent Filings Branch of the Division of Enforcement at (202)551-5466, or by e-mail at DelinquentFilings@sec.gov. (Rel. 34-66305)In regard to Beicang Iron & Steel the SEC has requested that if any broker, dealer or other person has any information which may relate to this matter, they should immediately contact Ansu N. Banerjee in the Division of Enforcement at (202) 551-5673, or by e-mail at banerjeea@sec.gov. (Rel. 34-66301)

The Commission also announced the issuance of an Order Instituting Administrative Proceedings and Notice of Hearing Pursuant to Section 12(j) of the Securities Exchange Act of 1934 against: China Bottles Inc.; China Hinon Biotech, Inc.; China One Holding, Inc.; China Private Equity Group, Corporation; Chinese Manufacturers Online Corp.; Long-e International, Inc.; and Nano Superlattice Technology, Inc. The Division of Enforcement alleges that these issuers are delinquent in its periodic filings with the Commission.

The SEC asked that if any broker, dealer or other person has any information which may relate to this matter, John T. Dugan of the Boston Regional Office of the Securities and Exchange Commission should be telephoned at (617) 573-8900. (Rel. 34-66299; Administrative Proceeding – 34-66298; File No. 3-14728)

China Voice Still in the SEC News

From the SEC Daily Digest:
On February 6, 2012, the Commission issued an Order Instituting Administrative Proceedings Pursuant to Section 15(b) of the Securities Exchange Act of 1934, Making Findings and Imposing Remedial Sanctions (Order) against Gerald E. Patera, based on the entry of a permanent injunction against him in the civil action entitled Securities and Exchange Commission v. David Ronald Allen, et al., Civil Action No. 3:11-cv-882-O in the United States District Court for the Northern District of Texas…The Commission’s complaint alleged that Mr. Patera acted as an unregistered broker by actively soliciting investors to transfer shares of China Voice Holding Corp. to his control and that he received transaction-based compensation for effecting the sales of investors’ shares of China Voice.

MARKET MOVES

China Green Agriculture to Settle With Shareholders
Xi’an-based China Green Agriculture Inc. (NYSE: CGA) announced that a settlement has been preliminary approved in regard to actions in regard to a shareholder derivative action, i.e. brought by some CGA shareholders (it is not a class action suit). Of interest, part of the agreement calls for CGA to make Corporate Governance Reforms. It does not provide for the payment of monetary compensation to shareholders, except to pay the plaintiff’s attorney fees and expenses. The final settlement hearing will be held March 30, 2012. For more information, see: http://www.sec.gov/Archives/edgar/data/857949/000114420412006615/v301716_ex99-1.htm.

SGOCO Receives Notice of Non-Compliance from Nasdaq
Beijing-based SGOCO Group Ltd. (Nasdaq: SGOC) has received a letter from Nasdaq on Jan. 30, 2012, indicating the company is not in compliance with the Minimum Market Value of Publicly Held Shares (MVPHS) of $5,000,000. The rules require listed securities to maintain a MVPHS of $5,000,000. MVPHS is calculated by multiplying the publicly held shares, which is the total outstanding shares less the shares held by officers, directors and beneficial owners of 10 percent or more of the outstanding shares, by the closing bid price. The company has 180 calendar days in which to regain. SGOCO develops its own brands and distribution in the Chinese flat panel display market.

AsiaInfo Receives Buy-out Proposal
Beijing-based AsiaInfo Linkage Inc. (Nasdaq: ASIA) has received a proposal from Power Joy Ltd., a wholly owned subsidiary of CITIC Capital China Partners II, L.P., to acquire all the outstanding shares of common stock in the company at a premium price. The committee has engaged Goldman Sachs (Asia) L.L.C. as its financial advisor to assist it in consideration of such matters. The price per share of the offer has not been shared with the public at this time. It is trading in the high $11′s, with a 52-week-high of $22.91 and a low of $6.21.

WSP Holdings Announces ADS Ratio Change
Wuxi-based WSP Holdings Ltd. (NYSE: WH) announced the company will change the ratio of its ADS’s to ordinary shares from 1:2 to 1:10, effective Feb. 15, 2012. JPMorgan Chase Bank, N.A. will arrange for the exchange of investors current ADSs for new ADSs. The company believes the ratio change will enable it to regain compliance with the continued listing standard of NYSE relating to minimum average share price.

Euro Tech Hires New Accounting Firm
Hong Kong-based Euro Tech Holdings Co. Ltd. (Nasdaq: CLWT) has hired Dominic K.F. Chan & Co., as its independent registered public accounting firm, replacing BDO Ltd. of Hong Kong, which resigned on February 8, 2012.

PEOPLE

UTA Hires New COO; Appoints Directors
Shenzhen-based Universal Travel Group (NYSE: UTA), which was halted from trading on the NYSE on April 11, 2011, has appointed Mr. Jun Liu as Chief Operating Officer (COO) and a board director. Ms. Moling Shang was also appointed to the Board of Directors. Liu joined UTA in Nov. 2009 and served as Universal Travel’s Deputy General Manager. He began his career in the hotel industry in 1988 working at the Beijing Likang Hotel. He has served as General Manager of Beijing Likang Travel Agency and subsequently established Beijing Hongtai International Travel agency where he served as General Manager. He graduated from the Party School of Beijing Municipal Party Committee of Economic Management. Shang has several jobs in the communications division of the Central Committee of the Communist Party of China (CPC), including Chief of the Propaganda Department in the Information Bureau of the CPC’s Central Committee and Associate Director of News Agency for China Central Television and her previous role as the Chief of Propaganda. She graduated from the Branch School of Peking University.

Giant Interactive Hires VP
Shanghai-based Giant Interactive Group Inc. (NYSE: GA) has hired Mr. Meng Wu as Vice President of Strategic Planning and Development of Webgames. Mr. Wu is the former president of web game developer Dovo Technology, Inc. He joined Dovo Technology, Inc. in 2007 as president and game producer, and under his leadership the company produced several successful webgames including Business Tycoon Online, Fu Ren Guo Online and Super Star Online. Giant Interactive Group Inc. (NYSE: GA) is a leading is an online game developer which focuses on massively multiplayer online role playing games.

New Borun Promotions
Beijing-based China New Borun Corp. (NYSE: BORN) has promoted Ms. Bing Yu (Ann) to Chief Strategy Officer from his current position as Chief Financial Officer and Mr. Yuanqin Chen (Terence) to Chief Financial Officer from his current position of Vice President for Finance. Mr. Terence Chen has served as Borun’s Vice-President for Finance and Financial Reporting Manager since August 2010. Prior to that, he worked at KPMG Huazhen in Shanghai, where he performed statutory and Sarbanes-Oxley Act related internal control audit, annual audit and reporting, and audits for initial public offerings for various companies listed on the New York Stock Exchange, Hong Kong Stock Exchange, and Shanghai Stock Exchange. He earned a Bachelor’s degree in Business Administration from Shanghai International Studies University and a Bachelor’s degree in Economics from Fudan University in China. China New Borun Corp. is a producer and distributor of corn-based edible alcohol in China. Borun’s edible alcohol products are primarily sold as an ingredient to producers of baijiu, a popular grain-based alcoholic beverage that is sold throughout China in retail stores, restaurants and bars.

Feihe International Appoints New Director
Feihe International Inc. (NYSE: ADY) one of the leading producers and distributors of premium infant formula, milk powder and soybean, rice and walnut products in China, today announced that the Board of Directors has appointed Ms. Xiaofei Ren to the board effective Jan. 31, 2012. Ren will serve as an independent director and a member of the Audit Committee, replacing Mr. Sean Shao. Ren will also serve as a member of the Nominating/Corporate Governance and Compensation Committees of the Board. Ren has served as Financial Director of Beijing Bonianhengteng Film and Television Culture Media Co., Ltd. since Sept. 2011. She was a senior accountant at Beijing Xinghua CPA Ltd. and was also an accountant at Beijing Zhongfadaoqin CPA Ltd. She served as Financial Manager of Zhengzhou Columba Holiday Hotel. Prior to that, she served as Chief Accountant of Zhengzhou Diefa Industry and Trade Co., Ltd. She is attending the Central University of Finance and Economics and received her bachelor’s degree from the University of Zhengzhou. Ren is also a member of the Chinese Institute of Certified Public Accountants (“CICPA”). She has more than ten years of experience in auditing, investment consulting and public offering consulting for national, multi-national and publicly traded companies, including U.S. public companies, and has extensive experience with US GAAP.

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Publisher’s Notes, Feb. 3, 2012

jstites — Tue, 14 Feb 2012 23:29:38 +0000

[Originally published Feb. 3, 2012, in CBK's email newsletter "Week in Review".]

Dear Friends: It’s been another busy week in the sector of China-based/U.S. listed companies, but I had some time to follow-up on some outstanding issues. See below.

A special thanks goes out to Professor Thomas Hazen, who teaches securities law at University of North Carolina-Chapel Hill who has offered up some background on both the CleanTech Innovations discrimination suit against Nasdaq and the FBI raid of the offices of The New York Global Group. See below.

Over the past few years I have tried to establish a SEC expert from the legal field outside of a private law practice (law school professors) to turn to when these sticky, and often undefined, issues come up to do with Chinese companies trading on the U.S. markets, particularly those which have come to the market via reverse mergers. To my surprise, people have been hesitate to weigh in. So, thanks to Prof. Hazen and also Allison Adams of UNC’s Kenan-Flagler business school, who put us in touch (Of note, Kenan-Flagler is very active in the China space).

Have a great week!

Janet Stites, Publisher & Editor
jstites @ chinabusinessknowledge.com

Newsbriefs, Feb. 3, 2012

jstites — Tue, 14 Feb 2012 23:27:35 +0000

[Originally published Feb. 3, 2012, in CBK's email newsletter "Week in Review".]

WHAT IS GOING ON WITH….

The sale of the OTC BB by FINRA to Rodman & Renshaw?

Admittedly this is not a topic keeping people up at night. But when it does come up some wonder, “Yeah, what happen to THAT acquisition?” Rodman & Renshaw announced it in Sept. 2010 in conjunction with its annual “Global Investment Conference.” Think: Janet Jackson & Radio City Music Hall. Then the story went by the wayside. Last week, Nancy Condon, a spokesperson from FINRA confirmed it is still in the works. In an email to CBK, she wrote: “The sale of the OTCBB to Rodman & Renshaw is progressing, but at this point I do not have a specific closing date.” A spokesperson for Rodman & Renshaw had no comment. In April 2011, Rodman announced the appointment of a new management team for the “new” OTCBB venture, Eric Hess as CEO and Carl Giangrasso as COO. On LinkedIn.com, both are listed as executives at “OTCCM”. The domain name, OTCCM.com, is inactive as of now, but listed as registered by “OTCDG” at 1251 Avenue of the Americas, NY, NY–the same address at Rodman. CBK does not know what to make of all this, but it seems Rodman has something up its sleeve. In the meantime, it appears to CBK that the OTC Markets Group has taken command of the “Over-the-counter” ship. While updating CBK company listings page late last year, we could not get a peep out of the OTC BB as to the status of certain Chinese companies trading there. Confusion abounds as many companies trading on the OTC QB are listed only, or erroneously, by the financial press as trading on the OTC BB. And many of the quote services only reference OTC BB.

The merger of Anslow & Jaclin & Sichenzia Ross Friedman Ference?

Oops, CBK missed the outcome of this one! The merger of these two law firms, which both have specialties in assisting Chinese companies in listing on the OTC boards via reverse mergers, was announced with some fanfare in April 2011. It was put to rest quietly in Oct. 2011. CBK reached out to Anslow Jaclin to inquire. Richard Anslow replied that the deal “had never been finalized”. Via a Google search CBK found a reference to its demise in an October article in The Reverse Merger Report. It states the merger was called off due to “professional differences”. See: http://reversemerger.dealflow.com/article/article.cfm?title=Sichenzia-Ross-Anslow-Jaclin-Shut-Down-Merger&sk=vcazslvcrmwcbdd

Bohai Pharmaceuticals Group, Inc. (OTC QB: BOPH)?

While doing some maintenance on the CBK page listing OTC QB companies, we found that Bohai Pharmaceuticals’ website was down. Further inquiries gave us pause and reason for concern that the company may have shuttered its doors without notice after uncovering the following (of note, we were just looking for the correct URL and we’re not saying it HAS shut down):

Gene Hsiao, the company CFO and a director, resigned effective Dec. 31, 2011.

The firm’s longtime Investor Relations firm, Crescendo Investor Relations confirmed it no longer represented the company.

The company announced in Sept. that it has done a voluntary review of some of its filings and that management, the Audit Committee and the board thought some of their filings should be restated to “properly recognize certain non-cash deferred tax charges related to the company’s pharmaceutical formulas as an intangible indefinite asset which the company did not previously recognize.”

ON THE OTHER HAND: On Jan. 5, 2012, the company filed an 8-K with the SEC announcing it has renegotiated a note due the same day to Euro Pacific Capital for $10.5 million at 12 percent interest with 3 months to pay it back. It also confirmed the resignation of Gene Hsiao as CFO and said the company is seeking a replacement. The company continues to trade on the OTC QB, with trading up a bit within the last week.

IF YOU HAVE ANY INTELLIGENCE ON THE STATUS OF BOHAI PHARMACEUTICALS, PLEASE EMAIL US AT: jstites@chinabuisnessknowledge.com.
___________________________________________

UPDATE: CleanTech Innovations (CTEK)/Nasdaq Discrimination Lawsuit

[If you blinked in the last week you may have missed the news of what seems like a nonsensical lawsuit. To catch up, see CBK's coverage at: http://chinabusinessknowledge.com/industry/cleantech-innovations-ctek-files-racial-discrimination-suit-against-nasdaq.]

As long as this newsletter is free, CBK does not have the funds for a crack investigative reporting team, such as “Woodward & Bernstein”, but we are digging around to get some context on the CleanTech Innovations (OTC QB: CTEK) discrimination lawsuit against Nasdaq in regard to its delisting. It just may come in bits and pieces

Earlier this week CBK spoke to University of North Carolina at Chapel Hill law school professor Tom Hazen about the viability of CleanTech Innovations Inc.’s (OTCQB: CTEK) discrimination lawsuit against Nasdaq. Hazen has a specialty in securities law and has also followed the evolution (and now the devolution) of the sector of Chinese companies coming to the U.S. capital markets (Hazen’s bio: http://www.law.unc.edu/faculty/directory/hazenthomaslee).

“This is the first time I’ve seen such a case as this in terms of Nasdaq or the SEC being sued for racial discrimination,” he said. He was not optimistic that such a suit could be won, but if it did get some traction the company would have to have some concrete evidence Nasdaq. “The key point they would have to argue is that the company was treated differently from non-Chinese companies. They would have to prove it had been held to a different standard.”

He also stated that if there is an arbitration clause in Nasdaq’s listing contract, CleanTech would have to avail that first before going to the courts (CBK trolled through many docs on the Nasdaq’s site and found only one, fairly simple, doc for company management to sign when listing. It did not have an arbitration clause, but further investigation is warranted). Additionally, Hazen speculated that Nasdaq may be immune from such a lawsuit as it is just a vehicle for listings of public companies, which did not have any control over the companies its lists except for making sure it met the listing requirements.

FOLLOW-UP: FBI Raid of the Offices of The New York Global Group

Of course, CleanTech Innovations came to the market with the help of Benjamin Wey’s New York Global Group, now infamous for the FBI’s raid of its offices last week. How, or if, that will have an impact on the CleanTech lawsuit remains to be seen. But the relationship was a natural segue to ask Prof. Hazen about a bit about FBI procedure and if the investigation into NYGG would be its only or, if they could have executed the search warrant for another federal agency.

He indicated that the FBI could have executed the search warrant for:

1) its own investigations of NYGG;
2) on behalf of the SEC;
3) on behalf of the U.S. Attorney’s General office.

He said if is was the New York Attorney General’s office conducting an investigation, the raid would have been handled by a state enforcement agency.

We shall have to wait and see.

_____________________________________________
NEWBRIEFS
–compiled with the help of Yiqing Zhang

Ossen Regains Nasdaq Compliance
Shanghai-based Ossen Innovation Co. Ltd. (Nasdaq: OSN), has regained compliance with Nasdaq in regard to the exchange’s minimum bid rule. The closing price of the company’s stock has been $1.00 per share or greater for the last 10 consecutive business days. Hence it has met the requirements for continued listing on the Nasdaq Global Market. Ossen Innovation Co., Ltd. manufactures and sells a wide variety of plain surface pre-stressed steel materials and rare earth coated and zinc coated pre-stressed steel materials. Its products are mainly used in the construction of bridges, as well as in highways and other infrastructure projects. Its stock is currently trading at approximately $1.10. Its 52-week-high was $4.77; its low $0.72.

AgFeed to Voluntarily Delist from Nasdaq
AgFeed Industries Inc. (Nasdaq: FEED) has announced that it will voluntarily delist itself from Nasdaq on, or around, Feb. 20, 2012. Management’s current intention is to discuss with the market makers for its common stock to have its common stock quoted on the OTC Pink tier of the OTC Markets, but no arrangements have yet been made in that regard. This will require at least one market maker to quote the company’s common stock on such quotation service after the market maker complies with the relevant rules of such quotation service; there is no assurance that a market maker will comply with those rules. The company’s share price currently does not meet compliance with Nasdaq minimum bid rule. AgFeed Industries, Inc. is an international agribusiness with operations in the U.S. and China. It has two business lines: animal nutrition in premix, concentrates and complete feeds and hog production.

Nasdaq (Briefly) Suspends Wuhan General
On Jan. 9, 2012, Nasdaq halted the trading of Wuhan General Group China, Inc. (Nasdaq: WUHN) on Jan. 9, 2012, at a last trade of $0.26, “for additional information requested” from the company. Trading resumed the next afternoon, on Jan. 10, 2012.

China Educational Alliance Trading Now on OTCQX
China Educational Alliance is now trading on the OTCQX, under the ticker “CEAI”. OTCQX is the highest tier of the OTC Markets. The company received a delisting notice from The New York Stock Exchange on Dec. 21, 2011. Its shares were suspended from trading on NYSE on Dec. 29, 2011. According to a NYSE press release, the exchange determined that “the company was no longer suitable for listing under Section 802.01B of the NYSE Listed Company Manual in view of the fact that it has fallen below the NYSE’s continued listing standard regarding average global market capitalization over a consecutive 30 trading day period of less than $15 million, which is a minimum threshold for listing.” The company announced the appointment of a new CFO, Cloris Li, in late November. Li replaced Alice Lee Rogers, who is taking on a new role as Vice President of the company’s North America business and operations. Li worked as a consultant for PricewaterhouseCoopers in China where she provided audit, internal control advisory and SOX compliance services to both private and public companies. Prior to that she was Vice President at China Authority Holding Inc., a Chinese investment firm that also provides advisory services to companies going public from 2007 to 2009.

Guanwei Recycling Receives Letter of Non-compliance from Nasdaq
Fuqing City-based Guanwei Recycling Corp. (Nasdaq: GPRC) received a letter of non-compliance from Nasdaq based on its stock not meeting the minimum trading price of $1.00 for 30 consecutive business days. There is no immediate effect on the listing of the company’s common stock. It has until July 23, 2012, to regain compliance, or otherwise be delisted from the exchange. Guanwei Recycling Corp. is a manufacturer of recycled low density polyethylene (LDPE). The company is currently trading at approximately $0.80. Its 52-week-high is $3.25; its low $0.70.

Sinovac Receives Letter of Non-compliance from Nasdaq
Beijing-based Sinovac Biotech Ltd. (Nasqaq: SVA) announced that it received a letter on Jan. 18, 2012, from Nasdaq citing that it does not meet the criteria for its Audit Committee and therefore no longer complies with the exchange’s listing requirements. Nasdaq requires that companies have three members on their audit committees. One of the company’s directors and audit committee members resigned from the board on Jan. 4, 2012, leaving it with only two. The company must come into compliance by July 2, 2012, or risk delisting. Sinovac Biotech Ltd. is a China-based biopharmaceutical company that focuses on the research, development, manufacture and commercialization of vaccines that protect against human infectious diseases including hepatitis A, seasonal influenza, H5N1 (bird flu) pandemic influenza and H1N1 influenza.

China GrenTech Amends Going Private Deal
Moving closer to going “private”, Shenzhen-based China GrenTech Corp. (Nasdaq: GRRF) has amended its agreement in the plan of its merger with Talenthome Management Ltd., which is wholly-owned by GrenTech management. The amendments are being made to correct the inadvertent omission by the company of 28,000,000 outstanding ordinary shares of the company (the “Additional Shares”) from the total number of issued and outstanding shares initially stated in the Original Merger Agreement. The amended number of total issued and outstanding shares stated in the Merger Agreement is 587,397,825 ordinary shares. The buyers have already secured a loan of HK$320,000,000 Guotai Junan Finance (Hong Kong) Ltd. The company’s Chairman and Chief Executive Officer, Mr. Yingjie Gao, has committed to an unconditionally disburse U.S. $3.45 by way of a shareholder loan at the effective time of the merger. The original offer of U.S. $0.126 per ordinary share and U.S. $3.15 per American depositary shares remains unchanged. The company is trading at approximately $2.91. Its 52-week-high was $3.70; its low $1.51.

Rodobo Late With 10-K
The beleaguered Harbin-based Rodobo International Inc. (OTC BB: RDBOE) failed to file its annual report for fiscal year ended Sept. 30, 2011, within the required time frame. The distributed a press release indicating it is working to complete it as well as a financial audit. It plans to file its 10-K by Feb. 15, 2012. Despite the company’s ongoing issues and its fall to the OTC PINK markets, it is currently trading at a respectable $1.69. Its 52-week-high was $2.70; its low, $0.10. Rodobo produces powdered milk formula products in the China.

ChinaCast Appoints Seasoned Financial Executive to Board
Beijing- based ChinaCast Education Corp. (NASDAQ: CAST), a post-secondary and e-learning services provider in China has appointment of Douglas Woodrum to its board as an independent director. During the dot.com era of the late 1990′s, Woodrum serves as CFO of the successful tech content site, CNET. Woodrum was appointed as the designee of Fir Tree Inc. pursuant to the Letter Agreement, dated June 27, 2008, between Fir Tree and the company. Woodrum is a private investor. He served as a research analyst for Jayhawk Capital Management, a private equity firm focusing on investing growth for small- and medium-sized businesses operating in China from 2006 to 2009. From 1998 to 2005, he was CFO of CNET Networks, Inc., an online media company. He received his B.B.A. in finance and accounting from the University of Iowa.

PEOPLE

China Finance Online Appoints Board Member
Beijing-based China Finance Online. Co. Ltd. (Nasdaq: JRJC) has increased the size of its board, with the election of Mr. Neo Chee Beng as an independent director and member of both the company’s audit committee and compensation committee. With the appointment of Neo, the board now has a total of six directors, including four independent directors. Neo is an executive director and the chief compliance officer of Persistent Asset Management Pte. Ltd., an exempt fund manager registered with the monetary authority of Singapore. He has been an independent director of LottVision Ltd., a company listed in the Singapore Stock Exchange, and also serves on its audit committee. Neo has served as vice president of investments at Vertex Management II Pte Ltd., where he headed its Beijing office from year 2000 to early 2005. He was the finance manager of the Singapore Stock Exchange-listed Jardine Cycle & Carriage Ltd., where he assisted the general manager of finance. Neo had years of auditing experience with international audit firms including Moores Rowland and Ernst & Young. He received his education in Singapore from Hwa Chong Junior College and received professional accountancy training. He is a fellow of the Association of Chartered Certified Accountants, United Kingdom and a member of Singapore Institute of Directors. China Finance Online Co. Ltd. provides financial services and products including news, data, analytics and brokerage-related services through web portals, desktop solutions and mobile handsets.

TAP CEO Appointed to Sino Payments Board
Hong Kong-based Sino Payments (OTC QB: SNPY), announced that Benny Lee has been appointed to its board of directors. Lee is founder of TAP Investment Group, which Sino Payments is in the process of acquiring.

FORWARD STEPS…

Qihoo 360 Announces Partnership with Sina Weibo
Internet-focused Beijing-based Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) has formed a strategic partnership with social media platform, Sina Weibo. Through the partnership, all of Qihoo 360′s registered users will be able to access Sina Weibo with their Qihoo 360 accounts and all Sina Weibo users will be able to access Qihoo 360 products and services with their Weibo accounts. In addition, Qihoo 360 will integrate Sina Weibo service into its key platform products, such as 360 Safe Browser and 360 Desktop. Qihoo 360 will also become an official security solution provider for Sina Weibo users.

Asia Carbon Completes Infrastructure Projects
Shanxi-based Asia Carbon Industries (OTC QB: ACRB) announced the completion of two infrastructure projects: a gas pipeline and naphthalene oil processing facility. The Gas Pipeline Project will enable the company to use natural gas as fuel for production instead of coal tar oil. The company invested approximately $2.5 million for the construction of the pipeline, which was initiated in June of 2011, and completed in Dec. 2011. The company began selling Naphthalene oil, a by-product of the carbon black production process in July, 2011. The company decided to increase its refining and storage capacity. The company invested approximately $3 million in the facility which has the capacity to process an additional 2,400 tons naphthalene per year. The company has a corporate office in New York.

Tri-Tech Holding Secures Wastewater Construction Projects
Beijing-based Tri-Tech Holding Inc. (Nasdaq: TRIT) has secured a Build-Transfer contract for the construction of a wastewater treatment plant and a wastewater pipeline network in Dawangdian Industrial Park in Xushui County, Hebei Province, totaled at approximately U.S. $7.9 million. Under the terms of the contract, the company will construct a wastewater treatment plant in an industrial park in Dawangdian Township, Xushui County using Orbal Oxidation Ditch technology. The project contract will be implemented under a Build-Transfer model. Upon the completion, the company will transfer the ownership of the project to Xushui Government for commission.

Concord Medical Hires Solebury Communications Group
Beijing-based Concord Medical Services Holdings Ltd. (NYSE: CCM) has engaged Solebury Communications Group LLC as its investor relations firm. Concord Medical operates a network of radiotherapy and diagnostic imaging centers in China. As of September 30, 2011, the company operated a network of 128 centers with 70 hospital partners that spanned 48 cities and 24 provinces and administrative regions in China.

SPECIAL REPORT: Offices of New York Global Group Raided by the FBI. Now What?

jstites — Mon, 30 Jan 2012 15:36:34 +0000

(Originally published on January 27, 2012, to CBK email newsletter list.)

Unless you are suffering a hangover from Chinese New Year’s celebrations or otherwise living under a rock, you have probably already read that on Wednesday, January 25, the FBI raided the New York office The New York Global Group, run by the somewhat infamous Benjamin Wey.

There was no official announcement by the FBI about the raid, but Supervisory Special Agent, Tim Flannelly, confirmed for CBK that it did happen. When asked for the legal name of Benjamin Wey (i.e. what is on his passport), he said he could not provide that because it could “compromise the ongoing investigation.” He did confirm the spelling of “Wey”, which has sometimes been reported as “Wei” in the press. News reports have mentioned Wey’s residence was also raided, but Flannelly did not confirm that. In addition, Flannelly would not comment on Wey’s work status or if he is a citizen of the PRC or U.S.

Most who read this newsletter will make the connection that The New York Global Group is the firm which brought CleanTech Innovations Inc. (OTC QB: CTEK) to the market. As reported by CBK last week CleanTech filed a lawsuit against Nasdaq alleging that the exchange used racial profiling when making the decision to delist it last year. [CBK had been making calls to follow-up on that story prior to the news of the NYGG raid. Stay tuned.]

Most CBK readers will also not be surprised that Benjamin Wey would find himself in hot water as he and his firm has been mired down in bad press for several years and often cited as an example of a firm bringing bad apples to the market when critics question the legitimacy of RTO China stocks. CBK has stayed away from that debate as we have no first-hand experience with Wey or NYGG, nor the resources to do a respectable job investigating the allegations.

In this era, it is not enough to just mention a firm has had a few companies delisted. That is very common now and if all the i-banks, accounting firms, law firms and IR firms were given a “Scarlett Letter” for each of their clients to be delisted, it would be a very long and comprehensive list with more firms active in the sector on it than not.

As CBK has written in the past, we are looking forward to a day when the “lemons” of the sector are flushed out so those companies in good standing can get back to work trying to build their companies and provide investor value. It’s a sad day that it might be at the cost of U.S. the tax-payers’ dollar paying for the FBI’s time, instead of the sector setting its own high standards and the companies policing themselves through a legitimate sector association. But then again, the FBI’s intervention (no matter what happens in with NYGG) might be just the muscle needed to send a message to the bucket full of Chinese companies still considering trying to cheat the U.S. markets to pack up and go home.

Ultimately, to think of the U.S. capital markets without Chinese companies at this juncture of the global economy seems not only ludicrous, but a really, really bad idea. Similarly, to think that somehow there is more malfeasance with Chinese companies than with other foreign entities, such as companies based in Russia or Brazil seems equally naive.

CBK will continue to follow the story.

—Janet Stites, Publisher & Editor

Press Breeds Press–Not Always a Good Thing

jstites — Mon, 30 Jan 2012 15:34:39 +0000

How The FBI Raid of NYGG Made the News

(Originally published on January 27, 2012, to CBK email newsletter list.)

The story about the press’s reporting of the FBI raid of NYGG’s offices is as fascinating and alarming as the story itself.

It seems the news of the raid was first reported on a blog called The Financial Investigator, penned by Roddy Boyd. So kudos to him. That said, his only source was an unnamed employee of NYGG, who he identifies vaguely as a company “official”. Again, bravo for having that inside source. However, Boyd did not even make an effort to confirm the raid with the FBI itself. This is inexplicable for a seasoned journalist. It is easy to find the names of the press team at the New York FBI offices through a quick search. Their names and phone numbers are listed prominently on the “Press Room” page of their web site.

Boyd went on to write that the NYGG “official” indicated that,
1) Wey’s apartment had also been raided;
2) that no charges have been filed;
3) “it was not clear what NYGG transactions were of interest to the FBI.”

Boyd’s next line is even more confounding, given he had just “sourced” a NYGG “official” to support all the information he had on the situation: “Attempts to contact NYGG and Wey were unsuccessful;…”

Keep in mind that the FBI had not released any information to the public about executing a search warrant for the offices of NYGG. Unless Boyd was at NYGG’s Wall Street offices Wednesday and saw the FBI enter, he was only relying on a NYGG “official” who clearly is “giving up” his own company, so what does that say about the source’s motives? Boyd could have called the FBI and asked if they had executed a warrant there. According to Flannelly, they would have absolutely confirmed that, but not given more information than that it had, indeed, happened.

So, what if the obviously disgruntled NYGG “official” was using Boyd as a tool? In this day and age no amount of press ***CORRECTIONS*** could mitigate the damage Boyd and the press citing his blog could achieve in a few hours on the Internet. Bad news on the Internet mimics the Cambrian Explosion. Then who would be getting investigated?

Here’s how the news unfolded (best as we can ascertain):

The Epoch Times picked up the story, citing Boyd. It’s hard to imagine reporters read Boyd’s blog daily (he does not even post daily) so it’s likely there is personal connection there and he “gave” them the story. Good for them; good press for Boyd.

They did not just repeat his post. They took the proper steps to confirm the raid had indeed taken place, naming the FBI spokesperson they contacted. Bloomberg jumped on the news a bit later and also mentioned the FBI had confirmed the story, but did not source the FBI spokesperson’s name. It leaves one thinking that they did not take the time to confirm themselves, as that would be standard practice, even if they read it somewhere else. A “spokesperson” for the FBI is not going to demand anonymity, nor would it be warranted here.

John Carney, who writes a blog called “NetNet” under the colorful peacock umbrella of CNBC.com did a hatchet job covering the story, regurgitating Boyd’s post and then lifting five paragraphs (300 words!) of a story a Bloomberg reporter wrote on Wey in Jan. 2011. In the world of video reporting that would be tantamount to ABC running footage of a CBS news story, as part of its own story. And this during a week where the issue of “copyright” was top of the news, with discussions of “SOPA” and endless stories about the Megaupload arrests.

Later in the evening of January 26, Reuters distributed a short piece with the news, citing the same FBI spokesperson as The Epoch Times and crediting The Epoch Times as the news source which broke the news, only mentioning The Financial Investigator as the blog EP “cited.” OUCH! I guess Reuters does not consider Boyd’s blog a news source.

About Boyd

Boyd is a financial journalist and author with solid credentials, a fact he under reports on his blog, which is curious as one would think he would want to rest on the laurels and differentiate himself from hobbyist bloggers and, in the case of the China-sector, the short seller/research firms. At first read, given his snarky tone, righteousness, and seemingly hostile attitude to “all companies Chinese” one might assume he is part of that pack. But he claims he does not trade stock in any of the companies he covers and does not dole out “tips” about what he plans to write about to investors.

He started his blog in July 2010 and seems to write sporadically on a wide swath of topics to do with malfeasance on Wall Street. It is interesting, though, how many of his random entries are about Chinese companies trading on the U.S. markets. It seems disproportionate given the limited number of his posts and respect to the probable universe–dollar-wise–of malfeasance on Wall Street. He has written about Benjamin Wey several times and covered the companies the short -sellers have already put through the meat grinder, CCME, HRBN, SPU, RINO and a few others.

He wrote a book about AIG’s collapse, but if you put “AIG” in the search box on his blog it brings up nine posts, only two of which have “AIG” in the title. One search results brings up a story about Kingtone Wireless and another one about Harbin Electric, which makes no sense at all. He does have ONE post on Lehman’s Dick Fuld, questioning the status of his Finra license (great idea). But if you search MF Global or John Corzine “no results are found”. If you search “Madoff” two posts come up, one is the Harbin Electric post cited already and another seems to be a long post about a company called SpongTech.

All to ask, why with all this talent, experience and connections, is Boyd so focused on the China markets and seemingly adding to a dialogue which already exists, instead of focusing on the BIG DOGS, who hold billions of dollars of pension fund monies for U.S. workers and whose ticker symbols make-up the portfolios of the majority of U.S. independent investors, most of whom hold no China stocks at all?

—Janet Stites, Publisher & Editor, CBK

Publisher’s Notes

jstites — Thu, 26 Jan 2012 22:42:39 +0000

(Originally published Jan. 19, 2012, in CBK’s weekly email “Week in Review.”)

Dear Friends:

It’s time again to put the year behind us, this one based on the Chinese calendar. And if it’s not going to be a bull market, a dragon market sounds good to me. This week marked another round of press releases devoted to management changes. I have not compiled any statistics on this topic, but it seems that the beginning of 2012 has brought a lot.

In this issue, CBK welcomes the accounting firm of Holtz Rubenstein Reminick LLP to its Professional Services Firms network. Read the profile of HRR below on its commitment to China.

Happy New Year’s to all our Chinese friends, where ever you may find yourself! Safe travels and have a wonderful week.

Janet Stites, Publisher & Editor
jstites @ chinabusinessknowledge.com

Professional Services Firm Profile: Holtz Rubenstein Reminick LLP

jstites — Thu, 26 Jan 2012 22:41:38 +0000

Address:
1430 Broadway, New York, NY 10018
Tel: U.S. (212) 792 -4800

Website:
English: www.hrrllp.com
Mandarin: http://www.hrcpa.com/china/index.php

Contact: aschneider @ hrrllp.com

Embracing China
While other accounting firms are re-thinking or fleeing the sector of China-based, U.S. listed companies, New York-based Holtz Rubenstein Reminick LLP (HRR) is “long” on China, renewing its commitment to the region and ramping up its business development effort. If what has happened in the technology sector since the dot.com crash of the late 1990′s, it’s a smart move, because much like the Internet, China is not going away.

HRR’s China practice is spearheaded by Andrew Schneider and Lian Brandt. Schneider is well positioned for the job. He has an expertise in conducting audits of public companies, as well as SEC accounting and disclosure rules related to IPOs, mergers & acquisitions. Brandt, who is fluent in Mandarin, has focused on manufacturing, distribution, retail, real estate, construction, healthcare, staffing and education. When she joined HRR in 2006, her language skills were not of great import to the firm. But as happenstance and global economics would have it, it was a fortuitous hire. Paul Becht and Lily Hui are also on the China team and the firm has several other Mandarin-speaking accountants in its New York office who lend support.

International Presence
In regard to its auditing practice, HRR has a relationship with DFK International, which allows it to have a global reach. DFK is a 50-year-old non-profit making consortium of independent firms and does not itself practice in the field of accountancy, nor does it provide business advisory service. Each DFK member is an independent legal entity in its own country. DFK has affiliate firms in Beijing, Guangzhou, Shanghai, multiple firms in Hong Kong, and multiple firms in Singapore. HRR often works with the assistance of firms on the mainland, but works with Hong Kong-based Andrew Ma DFK (www.amdfk.com), because it has the most experience with U.S. listed companies.

Schneider clarifies the relationship between the firms it works with emphasizing that Holtz is responsible for the planning, supervision and execution of the audit work done in China. “We are not relying on our DFK firms on any other firms we may engage to assist us in the process,” he says. “We send our own senior manager and partner level people to the clients’ offices in the PRC to conduct field work and use the lower level staff from the Chinese firms for assistance.” He adds, though, that speaking with partner-level people at their DFK, or other PRC based audit firms, allows the Holtz team to better understand the business culture and business environment in the PRC.

The SAIC/SEC GAAP Fix
When asked about the problems stemming from the differences in Chinese SAIC and SEC GAAP accounting, Schneider is not optimistic. “I am not sure there is a fix to get the SAIC and SEC GAAP in line,” he says. “Clearly a move to IFRS standards throughout the world would be a large help. It seems to me that historically the SAIC filings had not been viewed as much more than an informational filing requirement in China while the actual tax filings by the PRC companies, which are not public record, were viewed in a much more serious nature.”

He does believe accounting practices in China are improving. “As more companies list on domestic exchanges and the U.S. markets reopen to Chinese entities, investors will demand accountability, strong internal controls and quality work from the professionals working with these companies,” he says.

More Than an Audit Firm
In addition to offering accounting, auditing services, HRR is working with some larger Hong Kong and mainland China companies to help them establish subsidiaries or look for acquisitions in the U.S. The firm’s Wealth Management practice is also forging relationships with China-centric banks to attract Chinese national who are investing in the U.S.

(HRR is a member of CBK’s Professional Services Firm network. To find out how your firm can join, email: mwiebe@chinabusinessknowledge.com.)

Newsbriefs, Jan. 19, 2012

jstites — Thu, 26 Jan 2012 22:41:06 +0000

(Originally published Jan. 3, 2012, in CBK’s weekly email newsletter, “Week in Review.”)

OF NOTE…

Youku.com & Ku6 Media Ink Pivotal Distribution Deals,
with 20th Century Fox and YouTube, Respectively

Everyday in the news commentators are debating what is going to work in China and what is not going to work in China. But one issue surely all would agree on is that Internet-based streaming video will be a growth industry. In such, those companies offering such services are of great import right now and pivotal to watch, no matter their stock prices. The partnerships forged now, in terms of distribution of copyrighted material, may prove historically pivotal to this nascent industry.

Earlier this month Youku.com (NYSE: YOKU) secured a deal with Twentieth Century Fox Home Entertainment to license 250 of its titles of new release and library films. The titles will appear on Youku Premium. The on-demand platform, which comes at an extra cost for subscribers, processed more than one million orders since launching in beta a year ago, according to a company press release. The titles include blockbusters like Planet of the Apes, Ice Age, X-Men and Alien and are already being offered in time for the Chinese New Year holiday.

This week Ku6 Media Co. Ltd. (Nasdaq: KUTV) announced it had entered into an agreement with YouTube which will allow Ku6′s international users to view original videos from China through a new channel operated by YouTube.

In Oct. 2011, Tudou.com (Nasdaq: TUDO) sealed a deal with the Walt Disney Company for the online distribution rights for mainland China to the Pixar’s animated movie “Cars 2″.

Of course, “first to market” companies sometimes fall prey to factors outside their control and are left behind. For instance, in Youku.com’s case bandwidth could be a major issue down the road, as it is in the U.S. Yahoo! got out-yahooed by Google. Kodak, an American institution, filed for bankruptcy today, but indeed, had a long run.

Still, were we making a timeline of pivotal deals made by emerging Chinese companies, this would be a good one to note.

________________________________________________

SEC UPDATE

Judgment in China Voice Fax Blast Campaign
On Dec. 21, 2011, the SEC obtained a judgment against Robert Wilson and two of his companies, Strategic Capital and Green Horseshoe Holdings, Inc., in regard to the fax blast campaign the companies conducted regarding false and misleading statements. Wilson did not disclose the amount and source of the compensation he or the companies received. According to the SEC News Digest, Wilson and Strategic Capital consented to entry of a judgment enjoining them from violations of Section 17(b) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, without admitting or denying any of the allegations. The judgment also provided that upon motion of the Commission, the Court may order disgorgement of ill-gotten gains and prejudgment interest thereon against Wilson, Strategic Capital, and Green Horseshoe Holdings, Inc., civil penalties in amounts the Court deems appropriate against Wilson and Strategic Capital, and a penny stock bar against Wilson.

Fisher Promoted to Deputy Director of International Affairs
On Jan. 12, 2012, the SEC announced the appointment of Dr. Robert M. Fisher as Deputy Director in the SEC’s Office of International Affairs. Fisher joined the SEC staff in 2002 as a financial economist in the Office of Economic Analysis. He later became an Assistant Director in the Office of International Affairs, where he has been responsible for the SEC’s international technical assistance program for emerging and recently-emerged markets. He will now oversee policy issues for the office. Fisher earned his Ph. D. in economics from Duke University.

________________________________________________

MARKET MOVES

Shanda Interactive Shareholders to Vote on Going Private
Shanghai-based Shanda Interactive Entertainment Ltd. (Nasdaq: SNDA) has called an extraordinary general meeting of shareholders to be held on Feb. 14, 2012. Shareholders will vote on the proposal to adopt the previously announced agreement and plan of a merger dated Nov. 22, 2011, which would take the company private and off the Nasdaq. The meeting will be held at 10:00 a.m. (Hong Kong time), 8th Floor, Room 802-3, The Hong Kong Club Building, 3A Chater Road, Hong Kong.

WSP to Change Ratio of ADS Shares
Wuxi-based company WSP Holdings Ltd. (NYSE: WH) announced that the company is working with its ADS depositary, JP Morgan Chase Bank, N.A., to change the ratio of its American Depositary Shares (“ADSs”) to ordinary shares from 1:2 to 1:10. The plan was approved by the board of directors of the company. The company anticipates the Ratio Change to bring its average ADS price above $1.00 per share in compliance with the New York Stock Exchange continued listing standard relating to minimum average share price. The company will update the investors immediately when the effective date of the Ratio Change is determined in due course. Founded in 1999, WSP Holdings develops and manufactures seamless casing, tubing and drill pipes used for on-shore and off-shore oil and gas exploration, drilling and extraction, and other pipes and connectors.

Puda Coal Director Resigns; SEC Likely to Institute Administrative Proceedings
Taiyuan-based Puda Coal Inc. (OTN: PUDA) announced the resignation of Jianfei Ni from its board. Additionally, on Dec. 28, 2011, Puda Coal received a notice from the SEC that it intends to recommend administrative proceedings against the company’s securities due to the company’s failure to comply with certain rules under the SEC Act of 1934, including the failure to file certain quarterly reports and non-compliance of the company’s previously filed annual reports due to the auditors’ resignation and non-reliance advice.

VLOV’s Ticker Reverts to VLOV.OB
The ticker symbol of Xiamen-based VLOV Inc. (OTC BB: VLOV) reverted back to “VLOV.OB” on Jan. 11, 2012. For 20 days prior it had a “D” temporarily appended to it in connection with the reverse stock split on Dec. 9, 2011. VLOV designs casual, “fashion forward,” apparel for men.

JinkoSolar Incorporates French Subsidiary
Shanghai-based JinkoSolar Holding Co., Ltd. (NYSE: JKS) announced the incorporation of its French subsidiary JinkoSolar S.A.S. and the opening of its French office in Montpellier, in the province of Languedoc-Roussillon. The new location will support JinkoSolar’s local partners and complement the growth of the region’s solar industry. JinkoSolar Holding Co., Ltd is a solar power product manufacturer.

Hollysys Signs $16.9 Million Deal
Beijing-based Hollysys Automation Technologies, Ltd. (Nasdaq: HOLI) announced that its wholly owned subsidiary Concord Corp. Pte. Ltd signed a contract with Sendan International Co., Ltd. to provide electrical, instrumentation and control installation works for Rabigh Power Plant II in Rabigh, Saudi Arabia, valued at approximately U.S. $16.9 million. Hollysys Automation Technologies is a provider of automation and control technologies and applications in China. Concord engages in providing end-to-end complete electrification related services in rail, power, semiconductor, pharmaceutical, petrochemical, and other industrial sectors.

CGA Subsidiary Makes ForbesChina.com List of Top 100 Companies
Xi’an-based China Green Agriculture, Inc. (NYSE: CGA) announced that Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (“Jinong”), a wholly owned subsidiary of the company, was ranked 17th by Forbes China in its 2012 Top 100 Chinese Public Companies with the Greatest Potential, published on January 4, 2012 and available at forbeschina.com. These rankings were based on several indices, including growth, return on equity, profitability and revenue. According to the company, Forbes also conducted necessary field visits during its survey. This is the second consecutive year the company is recognized by Forbes. In 2011, Jinong was ranked 17th in Forbes’ ranking of the Best Small and Medium Enterprises in China. China Green Agriculture, Inc. mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products.

PEOPLE

ReneSola Makes New Management Appointments
Jiashan-based company ReneSola Ltd. (NYSE: SOL) announced that it has appointed Mr. Jijun Shi as president of the European region and Mr. Stephen Huang, the company’s vice president of wafer sales, as president of the Asia-Pacific region. In addition, Mr. Zhidong Zheng, the company’s vice president of wafer technology, has been promoted to senior vice president. Dr. Paul Li, the company’s president of JC Solar and senior vice president, has retired but will remain with the company in a consulting role until June 30, 2012.

Management Changes at Hollysys
Beijing-based Hollysys Automation Technologies, Ltd. (Nasdaq: HOLI) announced the departure of Peter Li, CFO, who is leaving the company due to personal reasons at the expiration of his three-year contract, effective Feb. 1, 2012. Ms. Herriet Qu, the company’s Financial Controller, will replace Li as CFO. Ms. Qu has been with company for more than four years. She has an M.B.A. degree from Oklahoma City University. Mr. Jianfeng He, CEO of Beijing Hollysys Group Corp, is promoted to Chief Operating Officer of Hollysys in charge of the company’s daily operations and supply chain management. Mr. He has been with the company for more than 14 years. He has a Ph.d in Automation from South China University of Technology. Mr. Baiqing Shao, Vice President of Beijing Hollysys Group Corp., is promoted to Senior Vice President Business Development in charge of merger and acquisition and new business exploration. Mr. Shao has been with the company for more than eighteen years as one of the founding group of engineers, with a master’s degree in computer science from the 6th Research Institute of China Electronics Corp. He has an M.B.A. from Beijing University. Ms. Jennifer Zhang, IR Manager, has been promoted to IR Director in charge of investor relations management and corporate communications. Ms. Zhang has been with the company for more than three years. She has a B.A. in English Literature from Nanjing Agricultural University. Hollysys Automation Technologies is a provider of automation and control technologies and applications.

ChinaEdu Announces Management Changes
Beijing-based ChinaEdu Corp. (Nasdaq: CEDU) announced changes to the management structure of the company. Mr. Shawn Ding, president and chief operating officer will resign from that role to become chief executive officer, effective immediately. Former chief executive officer and chairman of the board of directors, Ms. Julia Huang, will maintain her role as the chairman of the board of directors and will continue to work full time for the company as executive chairman. ChinaEdu Corp. is an educational services provider in China. Established in 1999, the company’s primary business is to provide services to the online degree programs of Chinese universities.

Xueda President/Director Resigns
Beijing-based Xueda Education Group (NYSE: XUE) has announced the resignation of its president and director, Mr. Jun Wang. Mr. Xin Jin, co-founder and chief executive officer of Xueda Educational Group, will assume Mr. Wang’s managerial duties effective Feb. 1, 2012. The company also announced the resignation of Mr. Hai Yang as Xueda’s chief information officer, effective April 1, 2012. With the recent completion of the rollout of its enterprise resource planning system, the company does not see the need to replace the position of chief information officer at this time. The company provides tutoring services for primary and secondary school students in China.

Jingqwei CFO Resigns
Shenzhen-based Jingwei International Ltd. (Nasdaq: JNGW) announced the resignation of Mr. Yong Xu as Chief Financial Officer. The company’s controller, Ms. Li Suwen, CPA, will serve as CFO until a replacement can be found. Ms. Cao Wei, Director of Investor Relations and Corporate Secretary, will continue to manage the company’s investor relations activities. Mr. Yong Xu has agreed to serve as an advisor to the company during this transition period. Jingwei provides data-mining and interactive marketing and software services.

China Sunergy Appoints CFO
Nanjing-based China Sunergy Co., Ltd. (Nasdaq: CSUN) has appointed Mr. Yongfei Chen as its Chief Financial Officer, effective immediately, with a contract for an initial three-year term. Chen has been serving as the company’s acting CFO since Nov. 2010. Prior to that Chen worked in China Electric Equipment Group Co., Ltd., or CEEG, China Sunergy’s affiliated company, where his last role was as general manager of the finance department. Prior to that, Chen was an accountant at Yangzhong Sub-branch of China Construction Bank from 1997 to 2002. Mr. Chen graduated from Yanshan University in Hebei, China with a bachelor’s degree in industrial management engineering in 1997. He is currently a PRC Certified Public Accountant. China Sunergy manufactures solar cells and modules.

CleanTech Innovations (CTEK) Files Racial Discrimination Suit Against Nasdaq

jstites — Thu, 26 Jan 2012 22:13:20 +0000

(Of note, CleanTech Innovations Inc. is not to be confused with CleanTech Solutions International Inc. (Nasdaq: CLNT), formerly known as China Wind Systems. For more on CleanTech Innovations, visit: http://www.ctiproduct.com.)

Yesterday news of Liaoning Province-based CleanTech Innovations Inc. (OTC QB: CTEK) filing a lawsuit against Nasdaq for racism and discrimination caught our attention and we thought it worth its own news briefing. The complaint claims that racial profiling played a role in the company’s delisting from Nasdaq [See company press release below for details].

Such a suit would surely be pivotal. It’s a novel idea, and indeed there seems to be some U.S. nationalism involved in discussions of China-based/U.S. listed companies, particularly since the alarms have been sounded (very LOUDLY) when research firms/short sellers have reported fiscal malfeasance among China-based/U.S. listed companies, whether their reports proved correct or not. But it does not make sense that Nasdaq would want to delist a company which was otherwise compliant, given listings are the root of the exchange’s revenue source.

Astonishingly, Arlen Specter, Esq., the former United States Senator and former Chairman of the United States Senate Committee on the Judiciary, is speaking out on behalf of CleanTech. CBK is curious as to the origin of that relationship. “As noted in my letters of January 12, 2012 to Secretary of Commerce Bryson and Trade Representative Kirk, I have undertaken representation of CleanTech because of evidence of racist discrimination against the Company because it is Chinese. NASDAQ’s delisting of CleanTech has resulted in losses of more than $200 million in CleanTech’s shareholders’ value and loss of opportunities to bid on more than $100 million in contracts for wind energy towers on New Jersey’s coast, which would have resulted in U.S. jobs. This matter involves more than a private dispute against two litigants and impacts on U.S. diplomatic relations with China.”

CBK has not had time to do further reporting on this unique bit of news. But rest assured we will be following this lawsuit and revisit the topic soon.
__________________________________________

COMPANY PRESS RELEASE

CleanTech Innovations, Inc. Sues the NASDAQ Stock Market for Racism and Discrimination

NEW YORK, Jan. 18, 2012 /PRNewswire/ — CleanTech Innovations, Inc. (OTCQB: CTEK, “CleanTech”), a U.S. company and manufacturer of wind towers and other industrial products serving the renewable energy industry, announced that it has filed an amended complaint in the United States District Court for the Southern District of New York against the NASDAQ Stock Market, LLC and the NASDAQ OMX Group, Inc. alleging NASDAQ’s racial profiling and discrimination against CleanTech Innovations, Inc. and China based companies. CleanTech seeks further discovery against NASDAQ.

A copy of the complaint against NASDAQ for its discriminatory acts was filed today with the Securities and Exchange Commission, or the SEC, as an exhibit to a Form 8-K, which is available at: http://www.sec.gov/Archives/edgar/data/1382219/000118518512000079/ex99-13.htm. CleanTech also filed several other exhibits today to the Form 8-K as further evidence of NASDAQ’s racist discrimination against CleanTech.

At all times, CleanTech complied with NASDAQ’s listing standards and disclosure rules, has never been late in its regulatory filings and has been in compliance with securities laws and disclosure requirements. CleanTech has filed 3 separate S-1 registration statements with SEC, relating to various financing and has cleared SEC staff comments on all of them.

CHINESE GOVERNMENT AGENCY LAUNCHES INQUIRY AGAINST THE NASDAQ

On January 8, 2012, The China LiaoNing Provincial Government Small and Medium Enterprises Bureau, a major provincial government regulatory agency in China, sent official letters to The United States Department of Commerce and The Office of the United States Trade Representative, expressing the agency’s grave concerns regarding the racially-motivated discriminatory acts of NASDAQ against CleanTech and the resulting damage to CleanTech and China-U.S. business and trade relations. The English translations of the official letters were filed today with the SEC as an exhibit to a Form 8-K, which is available at: http://www.sec.gov/Archives/edgar/data/1382219/000118518512000079/ex99-14.htm

COMMENTS FROM FORMER SENATOR ARLEN SPECTER, ESQ., COUNSEL TO CLEANTECH:

Arlen Specter, Esq., the former United States Senator and former Chairman of the United States Senate Committee on the Judiciary, who represents CleanTech, commented, “As noted in my letters of January 12, 2012 to Secretary of Commerce Bryson and Trade Representative Kirk, I have undertaken representation of CleanTech because of evidence of racist discrimination against the Company because it is Chinese. NASDAQ’s delisting of CleanTech has resulted in losses of more than $200 million in CleanTech’s shareholders’ value and loss of opportunities to bid on more than $100 million in contracts for wind energy towers on New Jersey’s coast, which would have resulted in U.S. jobs. This matter involves more than a private dispute against two litigants and impacts on U.S. diplomatic relations with China.”

RACIST REMARKS CAPTURED ON THE RECORD MADE BY MICHAEL EMEN, A MEMBER OF NASDAQ’S SENIOR MANAGEMENT :

As captured on the record of testimony made by Michael Emen, NASDAQ’s Senior Vice President and Head of NASDAQ Listing Qualifications, NASDAQ delisted CleanTech under Michael Emen’s self-described “broad discretionary authority,” as he stated on the record, to “delist CleanTech…send a message to the world” against Chinese companies. NASDAQ and Michael Emen developed their prejudice and racial discrimination against the Chinese people, China based companies, acting outside NASDAQ’s regulatory purview, as further evidenced by Michael Emen’s racially biased statement captured on the record: “CleanTech’ s disclosures may have satisfied the letter of our rules, but they certainly didn’t satisfy their “spirit.” NASDAQ and Michael Emen’s “spirit” of racism against CleanTech and China based companies, rather than adhering to the rule of law, was evident when Michael Emen admitted on the record that CleanTech had complied with required NASDAQ disclosure rules. There is no “spirit of NASDAQ ” as a NASDAQ listing standard that could be found anywhere, including the NASDAQ Code of Conduct.

NASDAQ AND MICHAEL EMEN GROSSLY VIOLATED THE FUNDAMENTAL PRINCIPLE OF LAW – “ATTORNEY-CLIENT PRIVILEGE”

According to CleanTech’s complaint, among many other discriminatory acts by NASDAQ, NASDAQ’s Listing Qualifications Department and Michael Emen engaged in extensive discriminatory rulemaking, contrary to SEC mandates, and coerced CleanTech to waive its fundamental legal right to its attorney-client privilege as a pre-condition to listing. As captured on the record of testimony, Michael Emen stated: “you don’t turn over attorney client privileged documents, you don’t get listed…attorney-client privilege doesn’t matter with NASDAQ listing”. CleanTech seeks to discover if Michael Emen’s racist remarks were concurred by NASDAQ OMX Group’s Chairman H. Furlong Baldwin, NASDAQ’s senior management, and whether Michael Emen’s racial profiling against CleanTech is supported by NASDAQ’s Board of Directors, chaired by law professor Merit E. Janow of Columbia University. CleanTech seeks to discover the extent to which NASDAQ has approved Michael Emen’s discriminatory acts or approved Michael Emen’s demand that a public company waives attorney-client privilege as a listing requirement by NASDAQ.

NASDAQ’S LISTING APPEAL PROCESS WAS “FIXED” BY NASDAQ STAFF AGAINST CLEANTECH IN FURTHER EVIDENCE OF RACISM

In May 2011, according to CleanTech’s records, a NASDAQ employee by the name of T. Sean Bennett of the NASDAQ General Counsel’s office issued a contradictory Order purportedly acting on behalf of the entire NASDAQ Listing and Hearing Review Council (“Council”), an independent listing appeals body led by Brian Borders, founder of Borders Law Group. T. Sean Bennett signed an Order “on behalf of” the Council and falsely and bizarrely overturned the ruling of the Council’s own independent decision issued only a few days earlier, which ruled in favor of CleanTech. The independent Council ruled that NASDAQ’s delisting record of CleanTech “lacks sufficient fact and detail” to justify the NASDAQ Listing Qualifications Staff’s delisting decision. Upon information and belief, T. Sean Bennett, who shares the same office address with Michael Emen, acted and “fixed” the Council decision and reversed the Council’s independent and favorable ruling towards CleanTech without input from at least the vast majority of the independent Council members. CleanTech seeks to discover the extent to which such a discriminatory act was supported and acknowledged by the NASDAQ Listing and Hearing Review Council, its co-chairmen Brian Borders of the Borders Law Group and John C. Giesea, CEO of the Security Traders Association. Circumstances surrounding the bizarre reversal of the Council’s own decision and the “fix” by NASDAQ staff was filed today with the SEC as an exhibit to a Form 8-K, which is available here: http://www.sec.gov/Archives/edgar/data/1382219/000118518512000079/ex99-15.htm

AT LEAST ONE NASDAQ BOARD MEMBER STATED THAT HE HAD NEVER HEARD ABOUT A “CLEANTECH DELISTING” FOR REVIEW, A VIOLATION OF DUE PROCESS

Upon information, it is CleanTech’ s belief that no member of NASDAQ’s Board of Directors and only a very few members of the NASDAQ Listing and Hearing Review Council ever participated in CleanTech’s appeal process or were made fully aware of CleanTech’ s delisting appeal. NASDAQ’s violation of such due process and lack of transparency permitted NASDAQ Staff to “fix” the result it desired without properly informing many of its board and council members, in violation of NASDAQ’s own governance rules.

CleanTech will continue to exercise its legal rights to the fullest extent permitted by law. CleanTech believes racial profiling by NASDAQ has caused irreparable harm to CleanTech, a loss of more than $220 million in CleanTech’s market capitalization and significant losses to CleanTech’s institutional and “mom and pop” retail investing public across America.

About CleanTech Innovations, Inc.

CleanTech Innovations, Inc. is a U.S. company and manufacturer of wind towers and other industrial products serving the renewable energy industry. CleanTech designs and manufactures high performance clean technology products that promote renewable energy generation, energy savings and pollution reduction. CleanTech’s longstanding customers include some of China’s largest utilities companies and global Fortune 500 companies in China.

Safe Harbor Statement

All statements in this press release that are not historical are forward-looking statements made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. There can be no assurance that actual results will not differ from the company’s expectations. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect CleanTech’s current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in CleanTech’s filings with the SEC.

Contact:
Blair C. Fensterstock, Esq.
Co-Counsel to CleanTech Innovations, Inc.
Fensterstock & Partners LLP
Tel: 212-785-4100
bfensterstock@fensterstock.com