I don't think it's shorts, but if it is, I'd still stay away. With these financials, it would be easy to squeeze any shorts and send the stock price flying, just by making investors comfortable with the fact that you're a legit company. All that takes is a respectable audit firm. I don't care if it takes a year or two.
Surely every Chinese company knows this by now, so those that refuse to take the step, IMHO, have something they don't think will past muster with a true accounting firm.
The SEC just halted 17 OTC companies. If they think things are not kosher, not being listed on an exchange doesn't protect anyone.
The only thing necessary for the triumph of evil is for good men to do nothing.
EDMUND BURKE (and others)