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What: Shares of AutoNavi (NAS: AMAP) have plunged today by as much as 14%, as auditor probes surrounding Chinese companies scare off investors.
So what: The mapping data provider got crushed the most out of a handful of Chinese stocks that could potentially be affected. The SEC has accused the Chinese divisions of the four large accounting firms of withholding documents that could be evidence of possible fraud.
Now what: There are nine unnamed companies involved in the investigation, and investors are afraid that AutoNavi could be one of them. It's possible that some companies could be forced to delist from domestic trading, which would be a major blow to the entities, along with their investors. Although the chances of this happening are very small, investors seem to be taking a better safe than sorry approach.
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The article Why AutoNavi Shares Plunged originally appeared on Fool.com.
Fool contributor Evan Niu, CFA, has no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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