Nasdaq Mystery: Why Is this Chinese Company Ringing the Opening Bell?
This is just a head's up:
Nasdaq put out a press releasetoday noting that on Monday Tao Li, chairman of a Chinese wireless company called Kingtone Wirelessinfo Solution, will be ringing the opening bell.
A few things caught my attention—especially given the scrutiny the Nasdaq has received from yours truly and others, for the number of Nasdaq-traded Chinese reverse mergers that have been halted for extended periods of time or delisted:
—Kingtone has a market cap of only around $24 million.
—Its stock trades for less than $2 dollars.
—It trades less than 60,000 shares a day.
Kingtone is so small that normally it would fall below the threshold for me to discuss on-air or here on cnbc.com.
But wait, there’s more. Dig a little deeper, and, for what it's worth:
Kingtone's chairman is also chief executive of another company called China Green Agriculture, a reverse merger that trades on the New York Stock Exchange. China Green (by the way) is under investigation by the SEC, which is looking into a number of things, including its financial statements. China Green’s stock, since late last year, is down more than 50 percent.
And Kingtone's CFO, Ying Yang, is from China Green.
Given all this, the obvious question: What’s Kingtone doing ringing the opening bell?
I asked the Nasdaq, but never heard back.
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