Today asensio.com released a report on Yuhe International, Inc. (NASDAQ: YUII), showing that Yuhe’s auditor resigned abruptly, apparently due to Yuhe’s questionable related party transactions. On December 30, 2009, executives from Yuhe rang NASDAQ’s opening bell.
asensio.com has previously reported on another controversial company that rang NASDAQ’s opening bell and that was later de-listed and sued for securities fraud: Pegasus Wireless Corporation.
NASDAQ continues to show deficiencies in regulatory policy by letting questionable companies ring its opening bell, which allows these companies to profit from greater, but often undeserved, investor confidence.
asensio.com has also reported on further regulatory deficiencies at NASDAQ with a controversy surrounding NASDAQ’s former chief representative in China, raising questions about the extent to which NASDAQ complies with its own rules.