July 14, 2014 (Shareholders Foundation) - An investigation on behalf of investors of China XD Plastics Co Ltd (NASDAQ:CXDC) shares over potential securities laws violations by China XD Plastics and certain of its directors and officers in connection certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of China XD Plastics Co Ltd (NASDAQ:CXDC) concerning whether a series of statements by China XD Plastics regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

China XD Plastics Co Ltd reported that its annual Total Revenue rose from $249.82 million in 2010 to over $1.05 billion in 2013 and that its respective Net Income increased from $28.84 million to $13384 million. Shares of China XD Plastics Co Ltd (NASDAQ:CXDC) grew from $3.52 per share in September 2012 to as high as $12.20 per share in June 2014.

Then on July 10, 2014, a report was released asserting that China XD Plastics Co Ltd had filed reports with regulators in China that showed materially smaller amounts of revenue and net income for fiscal years 2010, 2011 and 2012, than its filings in the U.S. with the Securities Exchange Commission (SEC).

Shares of China XD Plastics Co Ltd (NASDAQ:CXDC) declined from over $12 in June to $5.33 per share on July 10, 2014.