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.
The Public Company Accounting Oversight Board (PCAOB) has censured PKF Hong Kong and revoked its registration, banning it from auditing US firms, writes accounting professor Paul Gillis on his website. This is a next step in efforts to get Chinese accounting firms into line with US regulations, and forcing to give insight in the books of US-listed Chinese firms.
2016 is going to be a rough year for China´s stock markets, explains WSJ wealth editor Wei Gu to CCTV America. Chinese can not withdraw up to US$50,000 from their account, flooting out of the stock markets yesterday. The government is halting its support and new supply of listed companies will increase demand on the markets
While the central government is eager to get foreign investors into its bond markets, they should care very careful in doing to, says Victor Shih, assistant professor political science, UC San Diego and leading author on the relation between political and financial factions in China, in Bloomberg.
Checking the accounts of US-listed Chinese firms has been off limits for the US watchdog PCAOB. Despite lengthy negotiations to allow the PCAOB to check Chinese firm, last week the door closed, reports accounting professor Paul Gillis on his weblog. And relations between China and the US are at a new low.
Reversed merges caused many fraud problems in the US and China has a similar National Equities Exchange and Quotations (NEEQ), also known as the “new third board”, writes accounting professor Paul Gillis on his weblog. Just like the poorly supervised US equivalent, it seems a road to fraud.