I received the news from fellow students and public yesterday about the crash in China Minzhong. The stock was trading 1.015 in the morning and suddenly it trended down in a spiral fashion all the way to 0.53 before a trading halt was imposed.
http://www.bloomberg.com/news/2013-08-26/china-minzhong-falls-by-most-on-record-after-short-seller-report.html
On the chart, there was already some telltale signs of weakness before the crashed, however no one expected it to crash so much in one day! The Bloomberg news was released yesterday where I believed short sellers were in control of this counter. Looking at most of the China stocks, China Gaoxian, China Milk, most of them related to agricultural got suspended and I am super wary of S Chips counters no matter how good it's fundamentals were. I seriously believe they lacked of quality corporate governance to warrant investors to take a serious look at it, or at least I won't even bother to take a punt on it.
Ronald K - Market Psychologist - The Big Speculator
