What is the matter then? Thunderstorms hit Wall Street in China under the concept stock
Shi Yuzhu domestic online games market is now the rage of the man of the hour, but when he recalled the giant network in November 2007 in the United States experienced class action lawsuit, the star of his restrained taste will quickly look away.
Same bitterly painful past, and there is another star character?? Jason Jiang. The conquest of the Wall Street playing with LCD business geeks, Focus Media experiences in the class action when whizzing down staring out of the stock price can only own grief.
" IT Time magazine, "read the three major U.S. stock exchanges of information found at the end of 2009, the New York Stock Exchange, 52 Chinese companies, the Nasdaq Stock Exchange has 124, American Stock Exchange 8. Another JP Morgan Chase ADR (ADR) database show that China in the U.S. OTC (OverTheCounter, OTC) has 100 enterprises, a total of 284.
In the 284 enterprises, the number of eaten the bitterness of collective action? Stanford Law School Securities Class Action exchange of information, the data presented is 25. It is understood that the agency established since 1995, the database contains the 3080 securities fraud class action cases.
In this list, China Life Insurance, LDK, Qiao Xing Universal, air network, CDC, UT Starcom, career worries, JA Solar Energy , Agria, Noah Education, Kunming flame medicine, Fu-dimensional film, LJ International Ltd., Dalian, Connaught Environmental Green Project Technology, AsiaInfo technology, and the letter hypermedia, Pacific Internet ... ... are "lucky" had been eyeing the U.S. investors. However, staff reporter for contemporaneous news reports, found that these companies have denied the collective action of their various allegations.
This, in the U.S. securities industry, a senior lawyer GeoffSant has deep feelings, he told the correspondents, in 2002 and 2006 to 5 years, there were six shareholders of listed companies in China was sued, and in 2007 In the shoot up to 10 companies were sued by a stockholder.
His analysis that while the Chinese companies listed in the United States doubled the rate of growth, but lags far behind the growth in the number of accused. If the Chinese listed companies in the United States can not face their own problems, I am afraid there will be more listed companies in the United States will embark on the dock. Why China's listed companies
repeated prosecution of U.S. investors? Secretary-General of the Asian Corporate Governance Association, Mr. Allen (JamieAllen) said that this shows that Chinese listed companies in the information disclosure of the existence of serious problems. However, anywhere in the world capital markets have prospectuses contain false or misleading information problems, only because a large amount of Chinese companies listed, only makes the problem more acute. It is understood that in 2009, the global IPO volume in the domestic and overseas listed Chinese companies accounting for as much as 45%.
So far, the United States or China listed companies mark of success. However, in a behind the scenes, these companies also have untold difficulties.
Wall Street is a symbol of American wealth, where not only money, flashing ring, but also the capital of cheating conspiracy. First set foot on U.S. capital markets as a rookie, very little knowledge of a specialist investment banking, securities knowledge, legal knowledge of Chinese business chiefs, will face little risk, and what are the costs?
Weak capital market does not believe the tears. U.S. investors in the critical front, has shown signs of large Chinese enterprises Huang Liaoshen been around, in the spate of class-action case, one by one obediently ate Yaba Kui.
Financial vulnerability, fatal knife Compared with U.S. and European companies, Chinese enterprises in the financial statements on the randomness to their tremendous disaster.
Both giant Shi Yuzhu, or the masses, Jason Jiang, in the country are "not to outlaw the cards," characterized by innovative business entrepreneurs. It is in the company statements on the "outlaw", making the two companies by the United States prosecution lawyers.
Time back to November 27, 2007, on behalf of U.S. investors in the law firm CoughlinStoiaGelerRudmanRobbins (hereinafter referred to as CSGRR) launched an attack to the giant network, alleging the giant network listed in the application and prospectus, did not disclose their flagship game " journey Online "in the third quarter of 2007, two important operational data are a drop in fact. CSGRR law firm believes that these critical data, should be promptly disclosed to shareholders, or is seriously harmed the interests of investors.
Encounter in a giant network of collective action in the next day, Jason Jiang of Focus Media has negative results on suspicion of withholding information and experience with a law firm scolded. U.S. law firm that Focus Media's registration application and prospectus, no full disclosure of the facts, because it does not disclose its Internet Focus Media Advertisement Business groups for a number of acquisitions, these transactions result in the gross margin decline branch. It is understood that started in November 19, 2007, Focus Media has released as of September 30, 2007 third quarter earnings, the report shows, due to several recent acquisitions, the company in 2007, the first Third quarter gross margin declined. The next day, Focus Media's stock fell sharply from 57.15 U.S. dollars per share to 52 dollars per share. CSGRR this firm Focus Media on behalf of all in the second public offering of the investor for damages.
Giants and was the masses, appeal, fully exposed the two companies for the ignorance of the rules the U.S. stock market. It is understood that the management of the United States Securities unusually severe, particularly in listed companies and Financial Agency disclosure of false attribution on the presumption of fault liability principle were adopted, namely, information providers, such as their behavior can not prove that there is no fault, then the presumption of fault, investors should bear civil liability. This means that as long as there are flaws in the information disclosure in, it is very likely to be similar to the CSG
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I am an expert from China Manufacturers, usually analyzes all kind of industries situation, such as jet dust collector , air purifier smoke.
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