atans1

When China plays fail in US

In China, Corporate governance on 30/07/2011 at 7:02 am

The shareholders of dud China plays are increasingly filing class-action lawsuits against the companies, auditors and even the investment banks. The auditors and banks have deep pockets. http://dealbook.nytimes.com/2011/07/26/chinese-reverse-merger-companies-draw-lawsuits/

Too bad for investors in S-Chips that class-action law suits are difficult to undertake here. So the banks are auditors are safe from law suits.

  1. Also many US lawyers willing to work on contingency fee basis (no win, no pay) which is not allowed in Singapore. In S’pore you need deep pockets as well to wage legal battle with banks & auditors.

    So moral of story is to invest on US stock markets. At least can join in class actions.

    How about HK stock exchange? I haven’t really heard much shenanigans of chinese companies over there. HK also offers slightly better investor protection than S’pore.

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