Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Chinese electric-motor manufacturer Harbin Electric (Nasdaq: HRBN) were chugging ahead today, gaining as much as 21% in intraday trading on heavier-than-average volume.

So what: Yesterday Harbin's shares were seriously reeling, losing more than half of their value after a damning research note from Citron Research came out. Today, the shares were making their comeback on the back of a press release issued by the company, which claimed that Citron's assertions are "based on factually incorrect as well as out-of- context information" and are simply "another attempt to drive its stock price down." The company refuted Citron's allegations, including reiterating that China Development Bank has agreed to provide a $400 million loan to help finance the privatization of the company.

Now what: The good news for investors is that Harbin responded at all. In some of the accused fraud cases, the company went radio-silent in the face of allegations and the stocks thudded their way into the no-man's land of the pink sheets. That said, it doesn't necessarily mean a whole lot. If Citron was to be believed yesterday in its claims against the company -- which largely boil down to company officials being dishonest -- then why wouldn't investors just assume that the company is continuing to be dishonest today?

The truth about Harbin will reveal itself at some point. Whether or not it's pulling the wool over investors' eyes, one thing is for certain -- the world of U.S. listed, small-cap Chinese stocks is an absolute minefield.

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Fool contributor Matt Koppenheffer does not have a financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or Facebook. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.