|
 |
 |
Chinese companies brace for tough year in us as trust deficitwidens by efwegbe erergeer
 |
|
|
Chinese companies brace for tough year in us as trust deficitwidens |
|
|
|
Business,Business News,Business Opportunities
|
 |
The credibility crisis for US-listed Chinese companies may getworse and make it challenging for other companies aiming to getlisted in the US this year, analysts said yesterday, after a dozenUS-listed Chinese companies reportedly failed to file their annualreports by due date. "2012 would be a tough year for Chinese companies to getlisted in the US. And it would also be a bad timing for listing asthe credibility crisis would cause low valuation of thecompanies," Feng Po, an analyst with ChinaVenture, told theGlobal Times yesterday. A dozen Chinese companies missed a deadline and failed to filetheir 2011 annual results to the US stock exchanges as requiredbefore Tuesday, China Business News reported yesterday. LDK Solar, one of China's largest solar panel makers, said it stillneeds extra time to finalize certain items in its fourth quarterfinancial results of 2011, the report said.
NASDAQ-listed China Cast Education, on the other hand, excuseditself by saying some of its former employees had stolen itsbusiness licenses, company seals, and computers of its financedepartment. Failure to file results sends worrying signals to investors, as itmay suggest a company is disorganized or having disagreements withauditors over the accuracy of its financial statements, analystssaid. And under the US securities law, companies failing to submitfinancial reports may be ordered to suspend trading in seriouscases, a provision which is not always a bad thing, Feng said. "Some companies, especially small ones, have very smalltrading volumes in the capital market. Getting delisted or goingprivate when the market valuation is low may not be the worstchoice," Feng noted.
On the other hand, the delay in filing results will further hurtthe confidence of the market in US-listed Chinese companies andlisting hopefuls," said Li Yan, an analyst with Beijing-basedinformation provider imeigu.com. "While the US market welcomes such companies, it also hasconcerns about them," Li told the Global Times, noting thatthese companies should follow the rules, not only before but alsoafter they get listed so as to win lasting interest of investors. The US capital market showed great interest in the companies fromChina in 2010. However, trust eroded soon after accusations ofaccounting violation and misconduct.
AutoChina International, for instance, was sued by the USSecurities and Exchange Commission for stock manipulation, andSinoTech Energy was charged with financial fraud last month. Amid the credibility crisis, some Chinese companies like China AutoRental have dropped their IPO plans. I am General Industrial Equipment writer, reports some information about dc submersible pump , biodegradable dog bags.
Related Articles -
dc submersible pump, biodegradable dog bags,
|
Rate This Article |
|
 |
|
Do you Agree or Disagree? Have a Comment? POST IT!
Reader Opinions |
|
 |
|
|
|
 |
 |
 |
Author Login |
|
 |
Advertiser Login
ADVERTISE HERE NOW!
Limited Time $60 Offer!
90 Days-1.5 Million Views

 |
 |
ALEX BELSEY
I am the editor of QUAY Magazine, a B2B publication based in the South West of the UK. I am also the...more
|
 |
 |
 |
 |
LAURA JEEVES
At LeadGenerators, we specialise in content-led Online Marketing Strategies for our clients in the t...more
|
 |
 |
 |
 |
STEPHEN BYE
Stephen Bye is a fiction writer. His most recent novels are a 5-book “The Developer” series which be...more
|
 |
 |
 |
 |
LEVAL AINAH
I am an internet marketer and also an educator. My goal is to help others who are looking to improve...more
|
 |
 |
 |
 |
TIM FAY
After 60-plus years of living, I am just trying to pass down some of the information that I have lea...more
|
 |
 |
 |
 |
GENE MYERS
Author of four books and two screenplays; frequent magazine contributor. I have four other books "in...more
|
 |
 |
 |
 |
ADRIAN JOELE
I have been involved in nutrition and weight management for over 12 years and I like to share my kn...more
|
 |
 |
 |
 |
MICHAEL BRESCIANI
Rev Bresciani is the author of two Christian books. One book is an important and concisely written b...more
|
 |
 |
 |
 |
PAUL PHILIPS
For more articles, blog messages & videos and a free e-book download go to www.NewParadigm.ws your p...more
|
 |
 |
|