Quick Take – Harbin CEO Finally Says Something True (HRBN)

During today’s battle of the press releases over Chinese reverse merger company Harbin (HRBN), Chairman and CEO Yang Tianfu actually spoke some truth.

On the first of September, Alfred Little contacted HRBN‘s auditors, the world famous Frazer Frost, about one of Harbin‘s dirty land deals. Read more about that deal here and at Citron, here. Obviously knowing that details of this transaction were getting out, this morning Harbin issued a “call in yer certs” press release, begging shareholders to help “squeeze the shorts.”

Harbin Electric strongly encourages shareholders who wish to exercise their right to vote all of their shares held as of the Record Date at the Company’s upcoming Special Meeting to immediately contact their brokerage firm, bank custodian or other nominee to ensure that their shares are not out on loan as of the Record Date. Because of timing considerations, shareholders whose shares are on loan should instruct their brokers to take action several days in advance of the Tuesday, September 13, 2011 Record Date in order to have their shares returned to their accounts by the Record Date.

But the press release did not work, and Harbin shares traded down soon after. So, this afternoon out came another desperate press release. Sayeth Chairman Yang in reference to the suspicious land transaction:

this transaction structure is a common practice in China

Yes, Chairman Yang, fraud is all too common a practice in China.

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