China tech stocks dive on threat of US fraud probe

[bill]

China tech stocks dive on threat of US fraud probe [bbc.co.uk]

Chinese internet stocks have dived in New York trading after the US Justice Department said it was considering launching a fraud investigation.

...

Chinese search engine firm Baidu fell 9%, rival portal site Sohu lost 5.3%, and messaging firm Sina dipped 9.5%.

The fraud concerns have arisen after accounting irregularities emerged at a number of Chinese firms whose shares are traded in the US.

[Sgt_Kickaxe]

The news was disclosed by Robert Khuzami, director of enforcement at the US financial services regulator.

But who is he answering to? Who does Mr Khuzami report to? It's hard to take this type of announcement seriously since there are often personal agendas at play.