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.
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.
Political protest have dominated most of the media coverage from Hong Kong, but the resistance against a financial and regulatory overhaul has been as important, tells Beida accounting professor Paul Gillis in Quartz. Why an improved market oversight is long overdue.
On July 1, 2015 news rules on CPA practices by the Ministry of Finance will get in place. While the Big Four won´t have a lot of problems, Beida accounting professor Paul Gillis expects that the smaller CPA firms from the US might lose their work on the China market, he writes on his weblog.
For decades both Chinese and foreign companies in China used to circumvent murky Chinese corporate legislation by setting up so-called VIE´s on outside tax heavens, while the government basically looked away. Those days seem to be over, writes accounting professor Paul Gillis on his webblog, and the question is: what´s next?
China has announced new rules that reduce restrictions on foreign investments, for example in the internet. The traditional way to avoid those restrictions, VIE´s via Cayman islands and others, will be phased out fast, writes accounting professor Paul Gillis at his weblog.
China´s capital streams have been turning to the stock markets, even when the economy is slowing down. A major correction seems inevitable, tells Beida accounting professor Paul Gillis at VOA. And while China´s stock markets are used to rough times, for the many newcomers it might be a nasty awakening.
Accountant professor Paul Gillis will teach this fall a course on short selling campaigns against Chinese firms at Peking University. At his weblog he summarizes some conclusions. After a few bad years, this highly attractive business is back again.
Two major companies backed by Morgan Stanley, Tianhe and Sihuan, have told security regulators in Hong Kong, they cannot meet the deadlines for filing their audits, reports AP. Two red flags, causing serious problems for Morgan Stanley, says accounting professor Paul Gillis.