Just months after investigating possible subsidy abuse, the Chinese government announced January 23 that it's suspending the production and sales of nearly all Kandi Technologies Group Inc KNDI EVs.
The suspension is effective July 1 and covers eight models produced by Kandi’s JV Company, according to a notice by GeoInvesting.
"We have uncovered an instance of meaningful information arbitrage, where Kandi Technologies...could be in serious jeopardy," GeoInvesting released on its website. A follow-up memo proposed that Kandi could have a "catastrophic 2017."
In September, GeoInvesting speculated that Kandi’s subsidy fraud allegations would risk up to $167 million for the company, especially if the Chinese government reclaimed all subsidies issued in 2013 and 2014.
At that time, shares fell 6 percent.
Kandi traded down as much as 3.3 percent following the latest update; The stock traded recently at $4.45, down 1.1 percent on the day.
Shares are down nearly 40 percent over the last six months.
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