The same article is also published on SeekingAlpha today - I guess the author opted for a dramatic double media hit to promote his firm, CMR, which stands to benefit from the article's broad-brush negative bashing. It's a great advertisement for CMR's feet-on-the-ground paid research services - don't invest unless you pay me first!!!
What synergy to be a paid CNBC author, meanwhile CNBC has on-air guests like hedge fund owner Tilson. CNBC gets more viewers, their hedge fund Wall Street acquaintances just happen to be shorting the same stocks that CNBC bashes, and with every fear-mongering sound bite published, firms like CMR and Muddy Waters attract more and more hedge fund clients who want their special brand of due diligence before they open a short position. The essence of synergy in capitalism.
What this article does not manage to do, is to actually separate the wheat from the chaff. Like other China sector-bashing bits released by CNBC, they all use a broad brush to condemn all RMs. I'm SO glad firms like CMR are the ONLY way I can pick a sound China investment, and OF COURSE that information is TOP SECRET, basically CMR won't stand behind ONE SINGLE CHINA RM that they have vetted out as solid, unless of course you pays your money for your inside knowledge. Kind of reminds me of all those American stock promoters who write 20 page solicitations explaining how they have inside knowlege of the next 10-bagger stock, but you have to pay them for the Secret to Wealth. It's all the same, exaggeration to solicit business from long investors and also exaggeration to solicit business from short investors.
