I'll grant you that the details surrounding the Harbin/BBC transaction are murky and raise a red flag.
One of the things about Chinese companies that I've noticed is the often interlocking and complicated nature of the financial relationships between the corporation and its major shareholders or related parties. Small companies in China often don't have the benefit of credit lines or other debt financing so they have to get creative. Sometimes they shift cash around, other times they get loans or advances, often they require hedge funds or other sharks to fund their growth via PIPEs or convertible debt. BBC and Harbin both had to rely on these in their early days, and now some have been cashing in. Is what Harbin did illegal? I doubt it, given that they filed a Form 144 when selling their shares and disclosed the ownership of marketable securities on its 10K. Of course, they didn't disclose the identity of the security, which they probably should have done.
This transaction goes back before HRBN or BBC were fully reporting OTC:BB companies, as far as I can tell. We may never know the full details of why it happened, but HRBN was able to help finance BBC's early growth via accepting stock in lieu of collecting a loan/rec from Bodisen. BBC was starved for cash for growth and needed this to help get it off the ground. As its financials solidified and profitable growth ensued, the stock took off. HRBN sold near the top, so kudos to them.
Your other questions revolve around NY Global and Wei. If Wei was hired by BBC to promote them, then perhaps they will re-assess this relationship after the Post broke this news of past regulatory difficulties. Anyway, I care more about what the company is saying and reporting then what NY Global or Wei have been up to. I haven't determined any relationship other than the consulting fee they got for helping to place shares with institutions over in England. Presumably, those institutional buyers all kicked the tires pretty well on this one and weren't just relying on the information provided to them by NY Global. If anything, its NY Global that has to fear from the ramifications of the NY Post article, not BBC. It sounds like Wei has been doing some shady things in his past, but he doesn't appear to control much (if any) BBC stock. If BBC reports in-line with previous estimates and continues to re-iterate its reasons for expecting a strong year ahead, I think the stock should recover to the 15-16 area again.
AI
