By Michelle Toh, CNN Business Updated 1601 GMT (0001 HKT) February 17, 2021 https://edition.cnn.com/2021/02/17/investing/ehang-stock-wolfpack-shortseller-intl-hnk/index.html EHang (EH) has slammed a Wolfpack Research report as "deceptive." In a statement Tuesday, the company said that it believes the account "contains numerous errors, unsubstantiated statements, and misinterpretation of information." EHang added that it "will consider any necessary and appropriate course of action to protect the interest of the company and all of its shareholders." A man looking at an Ehang aerial vehicle during a conference last November in Wuhan, China. EHang is an autonomous passenger drone company founded in 2014. The company made headlines over the years for its promise of self-flying taxis, and went public in New York in 2019. In a 33-page paper, Wolfpack Research called the company "an elaborate stock promotion [scheme], built on largely fabricated revenues based on sham sales contracts." Wolfpack accused the Guangzhou-based startup of making up "its story with a collection of lies about its products, manufacturing, revenues, partnerships, and potential regulatory approval of its purported main business." EHang is just the latest Chinese company trading on US stock exchanges to face increased scrutiny after Luckin Coffee, another upstart from China, admitted to fabricating some of its sales numbers. This month, Luckin filed for bankruptcy in the United States, less than a year after it was delisted from the Nasdaq. And last year, iQIYI (IQ), the online streaming provider often referred to as the "Netflix of China," was also targeted by Wolfpack Research. The firm alleged massive fraud at the Chinese company, and the SEC opened an investigation into its practices. iQIYI has pushed back on the allegations, but said that it was cooperating with US regulators. Last October, iQiyi announced that it had conducted an internal review, which "did not uncover any evidence that would substantiate the allegations." The company did not immediately respond to a request for comment on the current status of the probe on Wednesday, while the SEC declined to comment. An EHang spokesperson told CNN Business on Wednesday that the company "strongly believes that Wolfpack lacks a basic understanding of [its] business and operations," and that "it would refute the Wolfpack allegation in full" shortly. The spokesperson also referred back to the firm's statement that it was "committed to maintaining the highest standards of corporate governance, as well as transparent and timely disclosure in compliance with the applicable rules and regulations of the United States Securities and Exchange Commission and the Nasdaq stock market." The SEC declined to comment on the EHang report.
No surprise really. The entire Chinese culture is built on deceit, cheating, lying and taking advantage of others if there is any benefit to oneself. Irrespective of laws and moral and ethical standards. Talk to any Chinese (or 99% of them) and generally after minutes any and every conversations turns to how something can be monetized to earn more, often by skirting moral and ethical values in chin dropping fashion.
When Chinese tourists visit either NZ or Australia, they're amazed to see ducks on the lakes. Their first response is usually.... "Whaaaatttt!!!....why don't you eat them?" They can't take their eyes off the ducks while licking their lips. If they were a labrador there would be no stopping them plunging headlong into the water.
They don't have a social safety net, most people do not have social security or retirement benefits. Those in the rural area are left to die at old age. The Chinese people are victims.
Lol, of course they are. So is the rest of the world.if you come to our country, one is expected to act according to OUR laws, OUR ethical and moral standards. They want to trade on OUR exchanges then they need to adhere to OUR accounting standards. End of story.
Sorry I've done business with the chinese over the years. They have been very forthright....many attacks on their government maybe justified but the chinese people are good people
They don't know better. Fierce competition and a culture that does not honor moral and ethical values AT ALL turned citizens into selfish beings who care about nothing else than themselves and their immediate family. Check out how many of wealthy Chinese volunteered their time and money recently for philanthropic efforts. Even wads of money does not change their mindset. It is all about them. That is how Chinese have conducted themselves in global trade for decades, that is how they have stolen IP at EVERY level, that is how they buy up properties and push locals out of every conceivable market around the world. You need to come up with some better arguments than just saying "they are good people", lol... When you raise human beings to only pursue life selfishly then that is how its citizenry becomes, self-absorbed, incapable of handling any criticism. Look at how HK and Taiwanese international students are shouted down at Australian, Canadian, American universities by their CCP classmates. Nothing of that is "good people". They are selfish beings more so than any other race on earth.