Alibaba´s shares fell when it disclosed the US stock regulator has asked some questions about its accounting practices, especially the relations with its logistical partner Cainiao Network. But, says accounting professor Paul Gillis to Bloomberg, there is no reason to expect real problems.
The tug of war between China and the US on auditing Chinese companies listed in the US, got a strong pull from the US side, as the Public Company Accounting Oversight Board proposed new standards. Potentially a huge improvement writes accounting professor Paul Gillis at his weblog.
Bounty hunters help Wall Street investors to hunt fraudulent Chinese crooks, reports the New York Times. The Wild-west equivalent emerged because both US and Chinese government did not do their jobs in going after them, says Beida professor Paul Gillis.
Recent action by US authorities against ZTE and the Bank of China shows that a tough line with Chinese fraudsters works, writes accounting professor Paul Gillis on his weblog. “Chinese regulators are …protecting Chinese fraudsters and thereby creating a safe harbor for those who wish to commit fraud against US investors.”
Not only foreign media companies, but anybody who publishes online might suffer under the new online media restrictions, says accounting professor Paul Gillis, including financial companies, he explains in the New York Times.
The sale of the 134-year old Chicago Stock Exchange to a consortium of Chinese companies led by Chongqing Casin Enterprise Group might just a way to capital for companies who cannot meet the standards of the NYSE and Nasdaq, warns accounting professor Paul Gillis on his weblog.
The Public Company Accounting Oversight Board (PCAOB) has censured PKF Hong Kong and revoked its registration, banning it from auditing US firms, writes accounting professor Paul Gillis on his website. This is a next step in efforts to get Chinese accounting firms into line with US regulations, and forcing to give insight in the books of US-listed Chinese firms.
Guanxi, your informal network of friends and allies, might never be far away in China. But when it comes to the auditors of your firm, guanxi can get tricky. Accounting professor Paul Gillis reviews on his weblog a recent academic paper about this touchy issue.
Major securities firms are next in the anti-corruption drive by the central government. Paul Gillis, accounting professor at Peking University, cautiously welcomes last week´s moves, going beyond the initial hunt for culprits of this year´s market slump, he tells Bloomberg.
China has banned the US accounting watchdog PCOAB from peeking into the papers of Chinese companies, fearing infringement of state secrets. Accounting professor Paul Gillis sees, in his weblog, a new front, as Kering, parent of Gucci, asks a US court to demand the book of the Bank of China.