This morning, in a 13G/A filing, FMR LLC, commonly known as Fidelity, revealed that they have been selling off their once massive stake in Christopher Wenbing Wang‘s Chinese reverse-merger company Fushi Copperweld (FSIN).
Neither C-Wang (see here) nor FSIN (see excellent work here from Muddy Waters) are strangers to controversy. Are some large institutions finally seeing the light and realizing these Chinese companies are merely machines designed to rapidly separate Western investors from their money?
So what has happened?
Fidelity held a 10.3% stake as of the end of 2011, with most of that being in their Low Priced Stock Fund. Today they hold only 4.6% and are no longer required to make 13D or G filings.
Another large holder, GMT Capital, has also been selling off their position. At the end of 2011, GMT held an 11.06% stake, by the middle of March it was down to 9.36%.
In another 13G/A filing issued this moring, Fidelity revealed it finally dumped all of their Origin Agritech (SEED) another shady Chinese reverse-merger firm (which was explored previously here). At the end of 2011, Fidelity held 13.27% of the company. Today? Zero.
Unlike some dumb-dumbs, at least Fidelity has woken up.