Beida accounting professor Paul Gillis describes on his weblog how auditor KPMG Hong Kong got itself into trouble for signing off papers on China Medical, a company convicted in 2012 for looting US$400 million from its investors. Problem: KPMG Hong Kong was not really in charge and now the Hong Kong legal system caught up with this omission.
Category Archives: Stock market
Many Chinese companies took a listing at US exchanges because audits in Hong Kong and on mainland exchanges were stricter. The HK stock market now is watering down regulations for audits, notes Beida accounting professor Paul Gillis on his website to his shock, to pull back those Chinese companies from the US.
How to deal with Chinese investors? That question is asked more frequently by government agencies, startups, larger and smaller companies outside China, and even soccer clubs. Capital is flowing over from China to the rest of the world, partly through the massive One Belt, One Road (OBOR) investment program. But many Chinese companies, private and state-owned, also have their own investment agenda.
At the China Speakers Bureau, we offer a range of speakers who can help you to deal with that question. There might not be one answer, but as China’s economic standing in the world changes, looking for possible answers becomes more crucial for the world outside China.
Financial authorities in Beijing are playing with the idea to give tech firms a faster-track IPO in China, says accounting professor Paul Gillis at his weblog. Taking away some of the cumbersome restrictions for IPO’s in China might lead to the expected ban of variable interest entity or VIE’s, a side-track allowing Chinese firms to list in the US, he suggests.
Oversight of Chinese companies listed in the US has been ongoing troublesome, as auditors miss access to much information considered a state-secret in China. Peking University accounting professor Paul Gillis told the U.S.-China Security and Economic Commission 26 January how to solve the conundrum
A Chinese bid for the Chicago Stock Exchange is running into major roadblocks, both in China and the US. The bidder the private Chinese company Chongqing Casin Enterprise Group might have waited too long, says business analyst Shaun Rein in the South China Morning Post. Both in China and the US barriers seem too high to close the deal.
A turf war between the Securities and Futures Commission (SFC) in Hong Kong and Hong Kong Exchanges and Clearing (HKEx) over who should regulate new listings in Hong Kong proves selfregulating of the financial industry does not work, writes accounting professor Paul Gillis on his website.
Both Baidu and Alibaba might be the first US-listed Chinese companies whose books are going to be checked buy the US regulator PCAOB, after a decade-long stale-mate where China refused such controls, citing state security. Accounting professor Paul Gillis is carefully optimistic, he tells the Wall Street Journal, but warns it is not yet a done deal.
The US Securities and Exchange Commission voices concerns about Alibaba´s sprawling business empire, and the way its accounting is organized. But also investors are concerned, tells business analyst Shaun Rein in the Financial Times.
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.