Bounty hunters help Wall Street investors to hunt fraudulent Chinese crooks, reports the New York Times. The Wild-west equivalent emerged because both US and Chinese government did not do their jobs in going after them, says Beida professor Paul Gillis.
The New York Times:
Many of the Chinese companies were soon engulfed in accounting irregularities or allegations of outright fraud. Others simply stopped submitting quarterly financial statements in the United States, leaving investors in the dark about what was happening with their operations in China.
Critics say regulators have been slow to act.
“The U.S. regulators have been unwilling to go to the mat on this,” said Paul Gillis, an accounting professor at Guanghua School of Management, Peking University in Beijing.
At the same time, there has been little political will to do anything about in China. “The responsibility for this stuff is spread out too widely, there are so many different Chinese bureaucracies involved,” Professor Gillis said.
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