An article appeared on CNBC attribute to Evelyn Cheng that discusses Noah Holdings, which saw its shares plunge 20.4% in New York trading on Monday. The US-listed wealth management company saw its shares fall on disclosure of ties to criminal detention. There is a very complicated web of relationships that seems challenging even for Chinese detectives to figure out.
This is a sign that the Chinese government is taking a tough stance back home in Beijing. There are a series of connections that are complicated and but there are legal complaints being filed back on China and police have been notified. A related firm, Camsing saw its stock plunge 80.4% as this web of somewhat related companies starts to come into view. This firm has been associated with a US firm related to Stan Lee.
Our Views: China is becoming a world political and economic power, so it is natural that it will be clamping down on any questionable activity in all aspects of business. There is much more that it must do, and Chinese authorities will be asking the world to be patient as they build a level playing field for global investors to invest in this vast economic giant.