Carson Block is the most famous short-seller of his generation, known for tome-length, densely researched short reports that eviscerate companies where he believes management is lying and taking shareholders to the cleaners. He is not afraid to use the f-word — “fraud” — in his reports. And as you will discover in this interview, his views on the market are laced with f-bombs and salty stories as well. So, trigger warning, folks: if you are squeamish about looking under the rock that is sometimes Wall Street, this interview may not be for you.
Back in January of 2017, the Securities & Exchange Commission (SEC) announced a significant expansion of its cooperation framework with Hong Kong's Securities and Futures Commission (SFC), as the SEC seeks to effectively protect U.S. investors from fraud and trading abuses in increasingly globalized capital markets.
The new framework expands on the agencies' 1995 Enforcement Cooperation MOU and 2002 IOSCO Multilateral MOU. It provides for significant information-sharing and enforcement cooperation including, but not limited to, investment advisers, broker-dealers, securities exchanges, market infrastructure providers, and credit rating agencies. With this expanded cooperation framework, the SEC is signaling that market players cannot evade the reach of U.S. law simply by operating from an offshore location.
By Drew Bernstein
Following a number of successful listings by Chinese technology companies in the past six months, U.S. investors are eagerly awaiting the planned listing of Alibaba. The world’s largest e-commerce company will be the largest Chinese offering to date and perhaps displace Facebook as the largest technology IPO of all time.
Investment banks are jostling for a place at the banquet table for a slice of what might be a $200 billion market cap valuation, and hoping that investors’ appetites will be far from satisfied. If the price pops, Alibaba could be followed closely by JD.com, Sina’s Weibo, and a host of other smaller Chinese companies, which will seek to take advantage of the festive mood to launch on the U.S. stock markets.
One group of investors that is surprisingly enthusiastic about this new crop of Chinese public companies are the China short sellers.