NetQin was repeatedly attacked by Muddy Waters because of the help of "insiders"

Recently, the US short-selling agency Muddy Waters has once again launched a wave of accusations against China's NetQin Technology Co., Ltd. In a recent public report, the resignation of Han Ying, the chairman of NetQin's audit committee, became the focus of the entire incident. Many suspicious points show that Han Ying may be the "insider" of NetQin that Muddy Waters has repeatedly accused.

It is understood that the news of Han Ying, the chairman of NetQin's audit committee, leaving the company was announced by NetQin on July 4. After Han Ying took the initiative to resign on June 25, NetQin kept it as internal information and did not disclose it to anyone. However, in the report released by Muddy Waters on July 7, it stood on Han Ying's side, saying that Han Ying actually had the intention to resign on June 25. This also makes people wonder, where did Muddy Waters know about Han Ying's intention to leave?

In addition, Muddy Waters pointed out in its report that "NetQin has learned that PricewaterhouseCoopers will not issue an unqualified audit report." and "NetQin's statement that PricewaterhouseCoopers requested to expand the scope of the audit is a distortion of the facts."

As only NetQin, PricewaterhouseCoopers and Han Ying knew the inside information, who provided the disclosure of the contents of these reports to Muddy Waters? Excluding NetQin itself and the third-party PricewaterhouseCoopers, Han Ying, who just resigned, became the biggest suspect.

As we all know, NetQin's stock market has been in a downturn and volatile state since it was accused by Muddy Waters in October last year. Han Ying's resignation has become the last straw that broke the camel's back for NetQin's stock price, not only causing NetQin's stock price to plummet 32% to less than $5, but also attracting another round of attacks from the short-selling agency Muddy Waters, which accused NetQin of deliberately delaying the release of information to cover up insiders selling stocks.

This is just as people familiar with the U.S. capital market revealed, "Third-party research institutions like Muddy Waters may only make profits through research reports, but most of them short-sell these companies' stocks by issuing bad, untrue investigation reports, causing investors to panic sell their stocks, and then buy low-priced stocks with investors who have reached an agreement, thereby earning huge profits."

On the other hand, after NetQin was shorted by Muddy Waters at the end of October last year, Han Ying, who was the head of the independent investigation committee set up against Muddy Waters, did not release the investigation report issued by Sherman and Deloitte until eight months later. At the same time, Han Ying was exposed for handling problems with PricewaterhouseCoopers during his tenure, which led to the delay of nearly half a year in the release of NetQin's annual report, and he eventually resigned.

It is understood that only PricewaterhouseCoopers and Han Ying knew about the conclusion confirmed by Sherman and Deloitte in their report that "NetQin does not have the problems mentioned by Muddy Waters in finance, taxation, employees, partners, and acquisitions." Unless Muddy Waters colluded with one of the parties, the news would never have leaked.

From this point of view, the stock price fluctuations caused by Han Ying's resignation and the so-called "evidence" that Muddy Waters should not have issued, all make people begin to doubt whether Han Ying is the "insider" of NetQin who has been constantly slandered this time.

So far, the share price of NetQin has dropped to $4.58, but it has not really collapsed. Perhaps we can regard this as a signal that if Muddy Waters continues to short NetQin with the help of the hedge fund behind it, then the time to buy the bottom has come, and the real "insider" will also surface.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.