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Friday, October 27, 2017 7:14:59 PM
http://abcnews.go.com/Blotter/us-investors-lose-billions-alleged-chinese-stock-schemes/story?id=18164787
Companies were able to exaggerate and in some cases fabricate their earnings reports, hiding behind an opaque Chinese financial system that made it difficult for auditing firms to verify the numbers. Many of the companies were located in rural parts of China where it could be difficult to verify that factories were actually producing the goods they had been describing to investors on glossy brochures and in presentations at lavish conferences.
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