China Growth Stocks

[ccsykes]

U.S. investors are not ready to accept these cultural differences. The cultural differences are what make investing in China a risky proposition. How do you know when a company has crossed the line?

You are right and that's why interest by U.S. investors in this sector is weak and many of these companies are leaving U.S. markets to pursue markets that have a little more willingness to understand how Chinese companies conduct business. This forum use to have some 20,000 posts a day, now it has a few hundred on a good day.

I don't think any of that will change until there is some form of regulatory cooperation between the two countries.

You still have not answered my question. Do you conclude that matching SAIC filings equates to fraud?

It doesn't equate to fraud anymore than non-matching filings mean a fraud has occurred. If a Company is faking it's SEC financial filings that require an audit, it would seem just as easy to fake an SAIC filing. So if they match, who's to say?

I simply stated SAIC filings are not very reliable documents and I stand by that assessment.

Now answer my question.. if independent audits can not be relied upon then what really is the point?

If anything, the whole China small cap fraud scandal simply exposed complacency by U.S. audit firms. Most of these "frauds" should have been easily discovered through a thorough, properly conducted audit.

Where are the class actions against the auditors?