S Chips: expect negative sentiment on sector, as 2 S Chip firms China Hongxing and Hongwei Tech have been suspended due to accounting irregularities, relating particularly to the cash and bank balances...
China Hongxing is a sports shoe and apparel mnftr, while Hongwei Tech supplies fibers to the textile industry. Their S Chip peers may be hit particularly hard today, as companies in these industries generally have high cash balances, and will now come under greater scrutiny from investors and auditors alike...
S Chips with sports shoe/apparel exposure:
China Sports Int’l,
Qingmei (sports shoe soles)
S Chips with textile fiber exposure:
China Gaoxian (Sias technical Sell last wk, TP $0.1 ,
China Taisan (Sias technical Sell last wk, TP $0.15),
Qian Feng Fabric,
China Sky Chemical Fiber,