China’s securities regulator has suspended 43 initial public offerings and refinancing cases being handled by the country’s second-largest accounting firm, including IPOs on the country’s new Nasdaq-style trading venue, as the company is probed for allegedly falsifying information.
Ruihua Certified Public Accountants, which audits almost a third of all listed companies in China, is implicated in a scandal involving chemical maker Kangde Xin Composite Material. The struggling firm is accused of inflating profits by CNY11.9 billion (USD1.7 billion) from January 2015 to last December. As the CPA responsible for the company’s auditing all those years, Ruihua is also under scrutiny, the China Securities Regulatory Commission said in a statement on its website on July 26.
The Zhangjiagang, Jiangsu province-based firm is also suspected of bumping up its operating income through fictitious sales, exaggerated operating costs and fictional expenses on research, development and sales. If found guilty, the company and its controllers will be issued with the maximum penalty and will be banned for life from the stock market, the CSRC added.
So it appears the Chicoms are about to learn the Thatcher theorem about socialism.
They sure seem to have conquered the Western-style of Accounting.
Numbers can be whatever you want them to be.
Mostly fake.
More important to own the Regulators and the Legislators.
Like here.
The Fix is always in. Always.
One lesson about foreigners investing in Chinese companies. They owe first allegiance to their communist masters. Second lesson – the primary purpose of allowing foreign investment is to cheat foreigners. Third lesson – China is at war with the world and has every intention of winning.
“China is at war with the world”
….and remember how and why China became a world beater in manufacturing.
The smart people in the west pushed to allow China to use their ‘cheap labor’ in order to join the real world of trade and commerce so that China would become less threatening to world peace and safety into the future.
Yeah.
That “cheap labour” has a feature that eventually in order to get more of that labour they have to invent more reasons to incarcerate them.
It becomes a problem when the new rules start indicting some of the politburo.
By the sounds of it they may have reached that point.
Exactly. The Chinese are convinced they are a master race with a mandate from the gods to enslave the world—and will stop at nothing to do so.
Put baldly, they are the Jews generations of our elites warned us about.
And our masters who thought nothing of slaughtering Jews by the million are lining up to lick the asses of the Chinese politburo clean.
“The smart people in the west pushed to allow China to use their ‘cheap labor’ in order to join the real world of trade and commerce so that China would become less threatening to world peace and safety into the future.”
That sounded great. I actually believed it until I saw what they were actually doing. China started taking over other nation’s South China Sea islands and building fighter strips and missile sites on them.
China passed a New National Intelligence Law. Look at Articles 7 and 14. All Chinese Citizens must support and assist the Intelligence Organizations. The Intelligence Agencies can request the active assistance of any Chinese Citizen.
Long term? If the Chinese economy tanks, expect Chairman Xi or his successor to unleash a new Communist Cultural Revolution that will seek out the Enemies of the People and Capitalist Roaders. You will find out the real reason why the rich Chinese are buying boltholes in Vancouver, NYC, London and Paris.
Meanwhile, universities in this country not only accept more students from China but also hire many of them if they make it all the way to a Ph. D.
That law is no joke, especially since the Chicom considers anyone with a Chinese father as a Chinese citizen, no matter his current nationality.
Most of you here know that I am of Chinese ethnicity, and hate the Chicom with every cell of my body.
On cruises talking to strangers, I don’t normally reveal my own personal profile. However, my wife got on with this Cantonese speaking couple from Canada, and told them I worked as an engineer before retirement. The man got from me I worked in radar. And this is actually what he said to me:
With what you know, you ought to go back to China and provide service to your people.
Not really wanting to launch into a tirade of how much and why I hate the Chicom, I simply replied you’ve got to be kidding. He misinterpreted it to be false humility, and said really, they have need of people with talent like yours.
For me, that was the end of the stillborn friendship. He was asking me to be nothing less than a traitor to the Republic which I love beyond any other earthly organization. Unfortunately, such feelings are not unusual, even among people who would never choose to actually live under the Chicom. (As I am sure this couple won’t.)
The prize is the world. Wouldn’t you cheat to win it’s control?
Zhangjiagang, Jiangsu …
Let me just say that I preferred the anglofication of Chinese place names of my youth … such as Peking.
I suppose if you learn the system, it works just as well…there, the P = B and K = J, among other weirdness. Ng is Wu. Go figure. I find the pinyin system makes more sense to me as an Anglo. The other system (Wade-GIles?) may make more sense to native speakers of other languages.
Falsifying information is a communist trait. Those who are unwilling to lie, die.
China being China and Communists being what they are,do we think this “# 2” accounting company is being persecuted for committing actual fraud?
Or for accidental truth?
The numbers coming out of China have been “dubious” at best for decades.
When every company survives based on its usefulness to the state,whatever this accounting company.”Number two in the Country” puts out will be government approved data.
Is this “Fraud” a bargaining ploy ?
My observation (for what it’s worth) is that the general Chinese population doesn’t worry too much about obeying every jot and tittle of the laws. They will push as hard as they can to get away with as much as they can and mostly don’t worry about the consequences (when everything you do is effectively illegal, what is there to truly fear?). It always seems to me a bit like that priest-minister-rabbi joke about weekly donations from the congregation: