Mineweb - BCSC accuses analyst of fraud in Silvercorp short-selling. What? Publishing a report based on boots-on-the-ground research, that leads you to take a short position, then profiting from that position, is fraud? Have the Chinese government bought someone at the BCSC now? Because we know that Chinese politicians have already gotten involved in political pressure on behalf of Silvercorp, including extra-judicial kidnapping. It's to the point where the SEC was investigating Silvercorp, not the report writers. Here, BCSC assholes, let me quote the Barrons article for you:
Whatever the verdict in Luoyang, Huang and his colleagues seem justified in their skepticism of Silvercorp's mining. Over the past few years, Silvercorp has steadily revised downward the grade quality it claims for its silver resources, to a level that's now just a third of its initial claims. Earlier this month, Silvercorp seemingly validated the hedge fund's findings, when Silvercorp told shareholders that its ore grade had fallen because its contractors had adulterated the Henan mine's output by adding "waste rock" to the ore to increase their transport payments and mining fees. Since the fiscal year that ended in March 2011, Silvercorp's annual earnings have fallen from 40 cents a share to 16 cents a share. Its New York Stock Exchange-listed shares have slid from their 2011 high of $16 to a recent $3.27.
Who exactly committed the fraud here? Hm? I certainly hope the BCSC aren't basing their case on this testimony from China:
Wei says Luoyang police tried to get the analysts to sign prewritten confessions that said the analysts had fraudulently run their chemical analyses on roadside rocks instead of Silvercorp ore. The Canadian Huang refused to sign what he said were false statements. But Wei, 33, was a Chinese citizen who couldn't hope that a foreign government would come to his aid. Wei led police to believe he would testify against his colleagues, and he signed confessions that -- now that he has escaped to London -- he says were false and coerced. "If I didn't say what they want," Wei tells Barron's, "I will be put in jail."
I wonder if the Canadian government will ever bother to get involved in this BCSC case, or if our own government's silence has been purchased with Chinese money:
Don Davies, the member of parliament who represents the Vancouver region where Huang's father lives, suggests the Canadian government may be dragging its feet. The administration of Prime Minister Stephen Harper, he notes, has fervidly pursued China's investment and trade. When contacted by Barron's, a spokesperson for Canada's Foreign Affairs Ministry, said, "We are in contact with local authorities and are monitoring the situation closely."
BCSC, you're fucking up badly. You've just done a fantastic job of proving that we can't even count on the regulators. I'll be keeping my capital the fuck away from Canadian exchanges from now on.