Short-term investments

9 Months Ended

Sep. 30, 2015

Short Term Investments Disclosure [Abstract]

Short Term Investments Disclosure [Text Block]

5. Short-term investments

 

Short-term investments comprise time deposits with maturity terms of more than three months but due within one year. The carrying values of time deposits approximate fair value because of their short maturities. The interest earned is recognized in the condensed unaudited statements of operations and comprehensive income over the contractual term of the deposit.

As of September 30, 2015, the Company had pledged short-term investments of RMB33.0 million, equivalent to approximately $5.4 million, and RMB 15.0 million, equivalent to approximately $2.4 million, respectively, to secure loans under the credit facility issued by HSBC Bank (China) Company Limited Hong Kong branch, “HSBC HK” (see Note 14), and notes payable under Hubei Bank, and the use of the pledged short-term investments is restricted.