NQ Mobile Surges as Probe Turning Up No Evidence of Fraud
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NQ Mobile Inc., the Chinese mobile-service provider accused by short seller Carson Block of overstating revenue, jumped as much as 21 percent after saying an ongoing investigation has found no evidence of fraud so far.
The stock surged 11 percent, the most in two weeks, to $12.36 yesterday in New York. The rally cuts into the 46 percent selloff since Block said in October that NQ Mobile was “a massive fraud,” allegations that the Beijing-based company denies. The stock was the biggest gainer in the Bloomberg index of the most-traded Chinese stocks in the U.S., which rose 0.2 percent.