Analysts said that Chinas growing middle class would drive demand for more diverse types of fish. So keen were investors that they plunked down over
After the hype came reality: The company has been accused of false disclosures and substandard auditing practices.
The flameout of a few Chinese companies in
Local analysts are talking about the
The major factor behind the low valuations lies in the delisting of Chinese players, said
Seven companies based in the
A total of fifteen Chinese companies remain listed on the two trading boards, but only one, Yangzhou Golden Century Wheel Manufacturing, is trading above its initial offering price.
This year, their share prices suffered from the
The price of
Faced with less interest by the market, one company without major problems is actually pulling up stakes.
Its abrupt departure could further damage investors trust in Chinese companies.
Many of the companies have demonstrated irregular public disclosure practices and disregarded requests of minority shareholders, which worsened their corporate reputations, Park said.
The researcher also noted that recently listed companies such as
In response to the series of scandals, financial authorities vow to strengthen due diligence and encourage good auditing practice by foreign companies.
The law currently allows any auditing firms to audit foreign companies listed on the local stock markets, a source at the audit supervision division at the
But the financial authorities are pushing for a regulation that only licensed audit firms conduct the task so that we can better detect companies that alter or omit financial statements.
(c) 2017 Emirates News Agency (WAM) Provided by SyndiGate Media Inc. (Syndigate.info)., source