By Bill Savadove, AFP 31 August 2011
Sino-Forest Corp., the latest foreign-listed Chinese company that is accused of dodgy accounting, has hurt the reputation of the country's firms and made it harder for them to list overseas, analysts say.
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By Trudy Wang, Caijing Magazine 6 June 2011
In this cover story, Caijing Magazine’s Shanghai Correspondent Trudy Wang explores the growing catalogue of securities frauds and reverse merger scandals that are hitting Chinese companies which are publicly listed on foreign exchanges, such as Nasdaq, Amex and NYSE. This exclusive special report is the first comprehensive treatment of this topic published in the mainland Chinese press in the Chinese language.
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By China Economic Review June 2011
The chaos that hit Longtop Financial Technologies bears a superficial similarity to other cases of Chinese reverse merger fraud: halted trading, short-seller pressure and the resignation of the firm's auditor. But here the similarity ends. This financial software firm is no small-cap stock. Longtop had a market cap of over US$1 billion on the New York Stock Exchange when trading in its shares was suspended on May 18.
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By China Economic Review June 2011
Most of the small-cap Chinese entities on over-the-counter bulletin boards are wasting time and money. The China Economic Review explores the growing wave of Chinese companies listed abroad getting mired in reverse merger frauds.
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By Scott Eden 21 December 2010
Scott Eden Reports on how a short-seller lifts the veil on fraudulent Chinese companies listed on US exchanges whose dishonest executives submit misleading statements to US regulators without fear of punishment on either side of the Pacific. Individual investors are at risk and usually unaware of the special dangers they face with these stocks.
(Published in The Street, 21 Dec 2010)
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By Robert Tie, Fraud Magazine 1 September 2010
A growing international consensus holds that corruption harms all companies – domestic and foreign. With insights contributed by ChinaWhys, this article from Fraud Magazine explains how to protect China business operations from both victimization and prosecution in the face of crackdowns on corrupt practices. Either click on the Fraud Magazine link or click on our link to read the article.
http://www.fraud-magazine.com/article.aspx?id=4294968722
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By Nicholas Schmidle, New York Times Magazine 21 August 2010
In southern China, making fake tennis shoes has become a very big business. Chinese authorities are slow to enforce the law, and it’s becoming harder and harder to tell which shoes are real. With insights from ChinaWhys, Nicholas Schmidle investigates the world’s biggest counterfeit headache that won’t go away.
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By Neil A. Martin 17 Dec 2007
More than 100 Chinese companies have gained instant stock-market listings in the US since 2000 via so-called reverse mergers. While the motivation behind such transactions may be as legitimate as a desire to save time and money, critics note that lax regulation has often gone hand in hand with price manipulation and other deceits.
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Published by Kina Affarer May 2007
Peter Humphrey, founder and managing director of ChinaWhys helps multinational companies in China protect themselves against fraud committed by employees and partners. "We have two kinds of clients. The smart ones contract us before they make an investment and ask us to check the target companies and their owners before they contact them. The others contact us after they are already in trouble," he says.
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By Roger Parloff 2006-05-01
Most big brands don't want to talk about it but there's a bug in the outsourced economy: foreign contractors make more products than they're supposed to, then sell the excess out the back door. It can be hard to shut down the third shift, especially in China. It's extremely hard to police global supply chains, and IP is leaking out through 1,000 cracks.
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By Business China - EIU 2006-01-30
Conventional wisdom says doing business in China can often be a risky affair. But just how risky is it? If the rapid growth in the business of corporate investigation is any indication, the answer seems to be: riskier than ever.
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By K. C. Swanson 2006-01-27
Companies expanding into China have learned to expect a wide range of problems symptomatic of the vast social and economic changes under way in the country. The hurdles range from immature legal and regulatory systems to widespread theft of intellectual property. On any such list are the instances of corruption, ranging from the petty to the truly appalling, that often occur in business there. In recent years, corruption has crept up the list of worries. An emphasis on better corporate governance in the U.S. and Europe has made it more urgent than ever for multinationals operating in China to keep clean.
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By Li Xiaowei 2005-07-21
An anti-counterfeit raid in a wholesale market uncovered leads indicating that a well-known global consumer brand's own staff were involved in trafficking fake goods. When the company realized that insiders were involved, it contacted Peter Humphrey for advice on the situation.
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By Mark O'Neill 2005-04-18
One major problem China faces in its march towards capitalism is rampant corruption. It has had limited success in fighting the disease but has been getting help from an unusual source - the United States' Foreign Corrupt Practices Act (FCPA).
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from Asian Counsel 2005-03-29
Top management, corporate counsel, CFOs, internal audit, HR and security executives must act in concert and understand the risks of not checking the background of new hires, vendors, distributors and business partners. This basic failure in due diligence and corporate governance can cause and has led to massive losses for many multinationals in China, said Peter Humphrey in a keynote speech to the In-House Congress in Singapore on Mitigating the Risk of China business operations.
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By Joe Havely 2004-05
Staff, information and property are the most valuable assets of any company, but for foreign businesses drawn to China, identifying and minimizing risk to those assets in a fast changing business environment can be a complex issue.
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By Godwin Chellam 2004-04-07
SHANGHAI, April 7 (Reuters) - The ouster of four Lucent
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Wu Zhong and agencies 2004-06-03
One of China's most successful rags-to-riches businessmen Chau Ching-ngai, once ranked among the mainland's 100 richest people by the United States' Forbes magazine, has been sentenced to a surprisingly light three years' jail for fraud.
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By Ben Blanchard and Godwin Chellam 2004-06-01
SHANGHAI, June 1 (Reuters) - A once high-flying Shanghai property tycoon was jailed for three years on Tuesday for stock market fraud and falsifying documents, Xinhua news agency said, in a case that trained the spotlight on official corruption.
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By Scott Hillis 2004-02-21
BEIJING, Feb 20 (Reuters) - Liu Jinbao, the former chief of the Bank of China's Hong Kong branch, has been arrested, the latest senior financial official to be toppled over corruption.
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Dow Jones Newswires 2004-07-05
Citigroup Inc.'s recent suspension of two senior China bankers might prompt foreign firms to rethink their traditional reliance on well-connected power brokers for a fast-track to market share.
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