China HongXin which had asked for a Trading Halt on February 22, 2011 after its shares collapsed on an intra-day basis has announced that its auditors have detected certain financial irregularities.  It will appoint a Special Accountant which will report to the Audit Committee.

I had heard some market rumours of this last week from some accountant friends and alluded to this in one of my Blogs.  While we can do nothing with our China HongXin shares which remain suspended - another high profile S Chip fraud case - if that is what the Special Accountant reveals,  will be negative for S Chips overall and will also put special focus on companies in the same industry.