The Crock of @#$% Report v.013

July 10, 2015
Everything You Need to Know About China's Stock Markets

Everything, huh? As a person who once worked for a US company which made the headlines of the Wall Street Journal for massive accounting fraud, I noticed that the article seemed to be missing one tiny little detail regarding its claim that it had everything I needed to know.

I therefore did some digging to help round out the truly epic compendium of Chinese stock market knowledge contained within this very short mainstream news article.

October 2012
US-listed Chinese Firms in Credibility Crisis: Who Are They? Where Are They? - Zigan Wang, Columbia University

However, since year 2006 an increasing number of US-listed Chinese firms have been found out forging documents and making fraudulent financial reports. American investors and regulators including the Securities and Exchange Commission (SEC) were cheated before the scandals were public. Then various investigations were started toward those China concepts stocks by short sellers and professionals. Whenever there was evidence that a firm was exaggerating its performance in balance sheets, its stocks were shorted. After the confirmation of the fraudulent behaviors, those dishonest firms were forced to be delisted. In this paper I identify 263 stocks listed in the US exchanges with Chinese background and analyze their characteristics like headquarters, incorporation countries, auditing firms, listing method and delisting situation. Data analysis reveals interesting results that companies headquartered in small Chinese cities, audited by smaller auditing firms and listed via reverse merger transactions have a higher probability of being delisted.

Emphasis added. Wasn't ignorance bliss?