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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (3519)	10/3/2019 6:09:37 PM
From: Gemlaoshi	4 Recommendations Recommended By DinoNavarre elmatador Elroy Jetson kidl Read Replies (3) \| Respond to of 13876

Elmat, “Should things get really bad, there is nothing to stop Beijing from telling US investors: ‘You keep the BVI shell, we’ll keep the domestic Chinese assets’, notes Louis Gave of Gavekal Research. That one sentence sums up the fraud that Chinese companies have perpetuated on American investors. Trump is not being mean or unfair to demand that Chinese companies listed on American exchanges abide by the same financial reporting standards (including Sarbanes-Oxley) that American companies must adhere to. It should have been stopped 10 years ago. If you don't want to play by the rules of the game, you don't have the right to have access to American investors. The fraud happens at several levels: First is the creation of an offshore shell company in the BVI. Its impossible to tell if there are actually any Chinese assets in the shell. Often, it is only the rights to company declared profits or cash flow. Second, the BVI does a reverse merger with an American shell company listed on the Nasdaq giving the Chinese shell access to American equity markets. Chinese law does not recognize the BVI shell companies, so there is no legal recourse to assets even if there are assets in the shell. The BVI shells create unaudited financial statements that have no relation to reality. The American shell then reports those financials as if they are reality. If the Chinese corporations can't follow the Sarbanes-Oxley reporting requirements, they should be delisted. If they do follow Sarbanes-Oxley reporting requirements, then they have as much right as any only company to the US capital markets. It can't happen soon enough reuters.com