China Growth Stocks

[ccsykes]

One thing you need to realize is that SAIC filings do not lie.

But most Chinese companies are not truthfull in SAIC filings for a variety of reasons. This is a very cultural business issue in China. Some companies also use a third party filer who isn't concerned with accuracy. Other companies omit information on purpose to keep competitors from seeing what's going on.

It's not as black and white as you guys want to make it out to be. SAIC filings have been an easy boogey man because most people don't understand what the purpose of the SAIC is.

It's not a reliable source of information. If people can't trust the independent audits being conducted then what really is the point?

Another thing you fail to consider is it's very common in China for contracts to move forward on nothing but a simple handshake. In many situations companies begin work, or even begin to generate revenue from partnerships and JV's before the official paperwork has been processed on the business operation. This also causes errors in SAIC reporting.

You asked how I know these things, I know them because I know several Chinese business attorney's and I spoke frankly with them on the subject.

Chinese business practices are quite a bit different than what we consider normal in the western world. It's these differnces some people try and exploit.