F E aT U R E D a R T I c L E
Investing in China Has the Perfect Storm Passed?
U.S. AND CHINESE REGULATORS FORGE ENFORCEMENT COOPERATION AGREEMENT
T
he investor market for U.S.-listed Chinese companies is in a tailspin. A perfect financial storm has hit China. Allegations of fraud, a slow-down of the Chinese economy and a general reluctance by Chinese companies to embrace an investor-friendly demeanor have converged—leaving shareholders of Chinese companies in an investment quandary. A recently announced agreement between the U.S. Public Company Accounting Oversight Board (PCAOB) and the China Securities Regulatory Commission (CSRC) and its Ministry of Finance, however, appears to be a first step towards solving the regula-
tory dispute involving the audits of U.S.listed Chinese companies. While positioned as a cooperative agreement toward addressing transparency issues, many are questioning whether the agreement is enough to satisfy investor concerns going forward.
whaT haPPeneD? The highly publicized accounting frauds at a number of Chinese companies are the number one reason for the collapse of this market. Investor confidence is at a low point. Unfortunately, companies that had nothing to do with the scandals and actually
n BY cOREY FIScHER, cPa, MANAGING PARTNER, WEINBERG & COMPANY PA
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