Double due diligence efforts before investing
Recent fraud allegations prompt more scrutiny on PRC companies seeking to list
Issue: September 2011
Keywords (click to search):
due diligence
fraud
Chen & Co
listing
A sound security investment now calls for “doubled” due diligence efforts before and throughout the investment period, say counsel.
Securities regulators from China and the US are looking to more closely scrutinise US-listed Chinese companies following recent accounting scandals that have resulted in slumping securities prices and the short-selling of Chinese stocks.
The flurry of fraud allegations largely involves companies listed on the OTC Bulletin Board (OTCBB) through reverse mergers. This type of backdoor listing is...
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