China Growth Stocks

[prokopton]

A very informative video and article for those considering investing in Chinese RTOs. I'm not saying all Chinese RTOs are scams but a word of caution...

"More than 100 China-based companies have now been de-listed, have left the NASDAQ and New York stock exchanges, have been denied listing, or have withdrawn applications, all following allegations of fraud or accounting irregularities, the ABC News investigation found.

"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."

Notice the part in the video where they explain how "investors tour" are set up by some companies.


http://abcnews.go.com/Blotter/us-investors-lose-billions-alleged-chinese-stock-schemes/story?id=18164787