John Hempton observes:
There is a cottage industry in doing forensic analysis of Chinese frauds. I have analysed many and put only a smattering on the blog.Felix Salmon explains:
But I have never seen anything this big or this amazing.
Read the report. I am in awe.
What’s certain is that in the wake of all this, either Sino-Forest or Muddy Waters is going to lose all credibility: one of them is a multi-million-dollar fraud. Muddy Waters is short Sino-Forest, of course. If Sino-Forest turns out to be a slightly dodgy Chinese forestry company and not a Ponzi scheme, you can be sure that Muddy Waters has been covering its short all day and has banked a huge amount of money by putting out extremely misleading material. On the other hand, if Muddy Waters is right, then Sino-Forest is toast.