Reverse Takeovers and Chinese Firmson January 20th, 2011 at 10:49 am
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.
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