Financial Times (July 26)
2011/ 07/ 28 by jd in Global News
“Made in China, undone in America.” Chinese firms that list in the U.S., often through reverse mergers, have seen their popularity drop and shares slump as questions arise over the propriety of their books. Some of the world’s most respected investors, including John Paulson, have taken their lumps. As of July 20, the shares of four of these firms were trading at less than half the price they were initially sold to US investors. Meanwhile, one of the stocks had been de-listed from Nasdaq and all eight were trading far below their one-time highs.” This trend has raised questions about whether reporting and regulation in China fall short of international standards.
Tags: China, Financial reporting, Nasdaq, Regulation, Reverse mergers, U.S.
