Blog Archives

China closes door for US stock watchdog checks – Paul Gillis

Checking the accounts of US-listed Chinese firms has been off limits for the US watchdog PCAOB. Despite lengthy negotiations to allow the PCAOB to check Chinese firm, last week the door closed, reports accounting professor Paul Gillis on his weblog. And relations between China and the US are at a new low.

A third board to fraud – Paul Gillis

Reversed merges caused many fraud problems in the US and China has a similar National Equities Exchange and Quotations (NEEQ), also known as the “new third board”, writes accounting professor Paul Gillis on his weblog. Just like the poorly supervised US equivalent, it seems a road to fraud.

Reversed mergers market in US drying up – Paul Gillis

Hundred of smaller Chinese firms entered the US stock markets through reversed mergers, looking for an easy way to get access to capital. But changed regulations and weary US investors have likely killed that market, tells accounting professor Paul Gillis in the South China Morning Post.

Why Citic gets the blame for stock market crisis – Paul Gillis

China´s largest brokerage Citic is under investigation for causing the recent downfall in China´s stock markets. But they did just want the government initially wanted by cheering up the markets, says finance professor Paul Gillis to Bloomberg. The same government now needs a scapegoat.

Can US regulator inspect US-listed Chinese firms soon? – Paul Gillis

For decades Chinese companies listed in the US could not be inspected in China, because the US regulator, the Public Company Accounting Oversight Board (PCAOB), did not get permission to work in China. Accounting professor Paul Gillis expects this might be changing fast, he writes on his weblog.

Expected: crackdown on smaller CPA firms – Paul Gillis

New rules apply to foreign CPA firms in China since July 1, and will rely on the cooperation of China´s regulators. The big four might not have much trouble, writes accounting professor Paul Gillis at his website. But the smaller foreign CPA firms might be heading for a hard time.

The popping exuberance at Chinese stock markets – Paul Gillis

Many analysts have been looking at the government for a solution of the dropping stock markets in China. But accounting professor Paul Gillis says investors – including the foreigners – should have a look at their own “irrational exuberance”, he tells CNBC.

US inspection of listed China firms “little and too late” – Paul Gillis

Under new US rules the Public Company Accounting Oversight Board (PCAOB), the main U.S. audit regulator will start this year to inspect Chinese firms listed at US stock markets in China, Reuters reports. Accounting professor Paul Gillis is not impressed.

Sequoia: getting US-listed firms back to China – Paul Gillis

A rising number of Chinese companies, listed in the US, are returning home encouraged by rising stock prices. Bloomberg looks at Sequoia Capital China, one of the firm organizing the shift, and accounting professor Paul Gillis gives his take on the trend.

China offers VIE´s a way out – Paul Gillis

For decades foreign and Chinese companies used tax heavens like the Cayman Islands and Bermuda´s as a way to circumvent restrictions in China´s laws. Now the country is closing that loophole, but last week also offered a way out for those who feared to be in trouble, writes accounting professor Paul Gillis at his weblog, at least for online ventures.