Scepticism about the accounts of Chinese companies spreads
MUDDY WATERS, indeed. Concerns about fraud among Chinese companies listed in North America gained more traction on June 2nd, when a short-seller of that name accused Sino-Forest Corporation, a Toronto-listed forestry firm, of inflating its assets, among other things. The Chinese firm robustly denies the allegations; other research firms have come to its defence, although not before a precipitous fall in its shares.
Similar charges have been laid in the past against Chinese firms listed in America and Singapore. The sheer number of allegations raises an obvious question: if concerns are rife in places where there is lots of scrutiny, how bad might things be in Hong Kong, the largest market for overseas Chinese listings, and on the mainland? ...
