Jan20
A number of Chinese companies have recently listed their shares on American exchanges, often after going public by purchasing a shell company that is already listed. This kind of transaction, known as a reverse takeover, is reportedly being investigated by the SEC. According to the WSJ, a new report finds that a “spike in lawsuits against Chinese issuers” has contributed to a rise in securities litigation. Of the 12 Chinese companies sued in 2910, nine had listed through a reverse takeover.
Congress and SEC Hit Stocks Made in China (12/20/10) (subscription required)
Suits Versus Chinese Firms Drive up Securities Cases (1/20/11) (subscription required)
Citron Research Accuses China Valve of Fraudulent Financials, Acquisitions (1/14/11)