Toronto-listed Sino-Forest has seen its stock price plummet since June 2, when short-seller Carson Block and his firm, Muddy Waters, accused it of fraudulently exaggerating the size of its forestry assets.
Its market capitalization has fallen by roughly $4.1 billion since.
Sino-Forest has denied any wrongdoing and has appointed a committee of independent directors to investigate the matter. Chan could not be immediately reached for comment on Monday.
However, last Friday, the Ontario Securities Commission ordered a 15-day halt in trading of Sino-Forest shares and said it appeared that Chan and other executives had misrepresented revenues and kept bogus accounts, leading to Chan's voluntary resignation this past weekend.
The Sino-Forest saga is the most prominent of a series of recent accounting scandals to have buffeted investor confidence in Chinese companies listed in North America, triggering a flurry of regulatory probes both in Canada and the United States.
FAMED HEDGE FUND MANAGER JOHN PAULSON - WHO MADE BILLIONS BETTING THERE WOULD THE USA REAL ESTATE BUBBLE WOULD BURST WHEN IT DID - SOLD HIS SINO FOREST IN JUNE.
IT'S PROBABLY TIME FOR EVERYONE TO SELL ALL THEIR CHINESE STOCK HOLDINGS, AS THE WIDESPREAD FINANCIAL FRAUD AND OVER-DEVELOPMENT OF REAL ESTATE AT INFLATED PRICES CANNOT BE LONG SUSTAINED.
THE PROBLEM IS... WHERE DO YOU PUT IT?!?!?!
GOLD IS HIGH. THE DOLLAR AND EURO AND YEN LOOK WEAK. THE SWISS DON'T WANT THE FRANC TO APPRECIATE.
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