The Greencool Technology controversy could turn out to be another indictment against an analyst community more interested in flogging stocks than checking facts.
The refrigerant distributor's stock began a flaming descent on Thursday after a detailed article in the mainland's Caijin Times questioned the company's claims on technology, customer satisfaction and accounting standards.
Chairman Gu Chujun came off in the piece as a book-fiddling blowhard.
Analysts tell a different story. After a round of conference calls on Thursday, they said they were sticking by Mr Gu. Several houses, including underwriter ING Barings, HSBC, SG Securities and UBS Warburg reiterated buys, while CLSA called the allegations 'weak' and said the stock was cheap. Yesterday the counter regained some lost ground.
Brokerages also cited Mr Gu's claims that the investigation was based on stories from jealous competitors whose faulty coolants products were actually deadly 'explosives'.
The article clearly invites scepticism. It insinuated Greencool's turnover figures were inflated - but the analysis shows a complete ignorance of the company's revenue model.