Chinese companies pull out of US stock markets

IMO, its a struggle and fight/struggle for a better control of the 'book cooking'

Just a few years after Chinese companies lined up to sell shares on Wall Street, a growing number are reversing course and pulling out of U.S. exchanges.....The withdrawals follow accusations of improper accounting by some companies and a deadlock between Beijing and Washington over whether U.S. regulators can oversee their China-based auditors.

Your thoughts/comments/opinions/viewpoints please.

reply to post by hp1229


your source please?

Found with a quick google search..

www.npr.org...

as well as

www.cbsnews.com...

and

www.dailypaul.com...

china has carried on a massive infrastructure building plan for the last decade...the problem is they now have entire cites with thousands of housing units unoccupied, and business parks and retail outlets with no businesses operating in them...if you do not pay the masses enough in wages to buy the products offered, you end up with a dysfunctional society. this, along with the corruption associated with this "plan", is the very reason china goes through the extreme "ups and downs' in it's economy. caution for investors, should be observed when china refuses to go along with established accounting principles. there are historically good reasons why these principles are followed, they have been "vetted" by the examples of lost fortunes and ruined lives.

Originally posted by bluemirage5
reply to post by hp1229

 

your source please?

My apologies. Forgot to enter the source.

SOURCE

Originally posted by jimmyx
if you do not pay the masses enough in wages to buy the products offered, you end up with a dysfunctional society. this, along with the corruption associated with this "plan", is the very reason china goes through the extreme "ups and downs' in it's economy.

In other words, they do not have enough to invest (through their population?). Where is the wealth in China?

reply to post by hp1229


You know our computers are made in China. The wealth is probably scrap now. As the system is totally broken.

Originally posted by hp1229
Your thoughts/comments/opinions/viewpoints please.

Hmmmm my thoughts are:
We don't manufacture much anymore.
Many of us don't have enough extra cash to be 'good consumers' anymore.
Other countries are good at computers and tech industry now.
Our obstructionist congress got our S&P credit score knocked down to prove an abstract point about balanced budgets...

I am no economist but it is probably smart for a foreign country or business diversify a portion of their money in stronger (foreign) markets until our economy gets a bit stronger...

reply to post by jimmyx


China refuses to play by all the WTO rules and rightly so. The rules are weighted in the favour of certain countries. They are wise not to play by the rules...

reply to post by hp1229

Dozens of Chinese companies issued shares on Wall Street over the past decade, raising billions of dollars from investors who wanted a stake in the country's booming economy.

Many were private companies that could not raise money on Chinese exchanges that were created to finance state industry or wanted the higher public profile.

Chinese regulators encouraged the move as a way for entrepreneurs to raise money and speed the development of China's economy. But in recent years Beijing has encouraged private companies to issue shares in China to help develop its markets and give Chinese households better investment options.

So it looks like perhaps the first wave of rats jumping ship? However it also looks like these were straw companies created specifically to get on the US exchanges and raise capital in essence blowing up a bubble. So one more domino run on the house of cards... Who knows when the lynch pin will get knocked over... but we are certainly getting closer.