The list just keeps growing.
On Thursday, China MediaExpress, a supplier of television advertising services on buses, became the latest Chinese company to be charged by the US Securities and Exchange Commission of “fraudulently misleading investors about its financial condition.”
The complaint also names the company’s chief executive officer, Zheng Cheng, and seeks to bar him from serving as an officer or director of any US publicly traded company. Continue reading »
After a two year stalemate, China and the US signed a memorandum of understanding on enforcement cooperation last Friday, opening the possibility of US regulators gaining access to the audit papers of hundreds of Chinese companies listed on US exchanges. The agreement was signed between the US Public Company Accounting Oversight Board (PCAOB) and China’s finance ministry and its Securities Regulatory Commission (CSRC).
What are its ramifications? Continue reading »
Just when you thought you had heard the last of Chinese reverse mergers, along comes another accounting scandal that puts them back in the spotlight again.
The victim this time? Caterpillar, which on Friday stunned the market with news that it would have to take a $580m write down in the fourth quarter after it unearthed accounting irregularities at ERA Mining Machinery, a Chinese company that it acquired last June for $886m. Continue reading »