China Small and Micro Caps

[researcher59]

2011 was a disasterous year for China Microcap and Smallcap stocks. An index of 100 stocks that I created at the beginning of the year, ChinaMicro100, fell a staggering 68% in 2011. Fraudulent financial reporting, delistings, SEC investigations, attacks from short sellers and auditor resignations caused a 2nd consecutive year of severe price declines in the stocks. It will be interesting to see what develops in 2012 for this niche of several 100 stocks.

My index, ChinaMicro100, is reconstituted annually. I will be releasing the preliminary 2012 list of stocks shortly.