Carson Block talks about China's muddy waters

Carson Block, the founder of Muddy Waters Research, is moving markets these days. Sino-Forest shares, for example, have plunged 85% since Block levelled fraud allegations against the company on June 2. He has also questioned the financial statements of China MediaExpress Holdings and Rino International Corp, to name a few of the firms he’s honed in on. He has primarily focused on companies that use reverse listings or reverse takeovers (RTOs) — a way of obtaining a listing without going through an initial public offering (IPO) by merging with an already-listed shell company. We sit down and talk to him about these companies and China’s stockmarket.