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What: Shares of Chinese auto-component manufacturer China Automotive Systems
So what: For a small, publicly traded Chinese company, particularly a reverse-merger company, talking about anything having to do with accounting is akin to screaming "Fire!" in a crowded theater. Neither China MediaExpress
Now what: As China Automotive was careful to point out and emphasize, the accounting issues that are forcing the company to delay its 10-K filing and restate past reports are related to convertible notes that were issued back in 2008, not operational issues. But investors don't really care about that right now. With fear cranked to nosebleed levels in that corner of the market, investors are selling now and asking questions later. In other words, today's sell-off may be an overreaction.
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Fool contributor Matt Koppenheffer does not own shares of 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 on his RSS feed. The Fool's disclosure policy prefers dividends over a sharp stick in the eye.