Harbin Electric Plunging, Down 25%

Harbin Electric, Inc. HRBN shares are plunging on heavy volume today, down over 25% after the company was mentioned cautiously "again" at Citron Research. Citron Research ultimately said that Harbin Eletric is committing loan fraud, and that it had the documentation to prove it. At last check, shares of Harbin Electric were off $3.60 to $10.70, a loss of 25.17% on more than 3.8 million shares. In the note, Citron said, "Citron has hundreds of pages of SAIC documents – the in-country filings of Harbin's subsidiaries over the years. These documents do not reven remotely resemble the company that Harbin portrays to US investors in its SEC filings. But needless to say, we think no bank in China or anywhere else would dream of relying on Harbin's SEC filings, generated by a disgraced auditor, as a basis providing hundreds of millions of dollars in high-risk financing to fund a huge premium to pay off US investors." Here is Citron's full research report on Harbin Electric.