For over a month China MediaExpress Holdings, Inc. (NASDAQ: CCME) has been the subject of critical research reports from multiple sources, accusing CCME of outright fraud, some of them with significant evidence from investigations in China. This weekend yet another source presented evidence of potential fraud at CCME, with video of a visit to CCME’s headquarters in China. See reports at thefinancialinvestigator.com.
Trading in CCME’s stock has now been halted for two trading days. Such an extended trading halt is rare, even among the questionable ranks of US-listed Chinese companies. Neither NASDAQ nor CCME has provided a public explanation for the trading halt. In contrast, NASDAQ today gave a public announcement that it had halted trading in another US-listed Chinese company, China Agritech, Inc. (NASDAQ: CAGC), and gave the reason for the halt.
CCME has to file a 10-K by Wednesday to comply with the deadline. CCME investors have apparently been hoping that CCME’s auditor, Deloitte, will give the company a clean opinion. That now looks doubtful.