Given what we’re used to from China’s state-controlled media, this article about the behavior of Chinese firms listed on U.S. stock exchanges stands out for being remarkably frank about the misbehavior of China’s corporations.
Are law-breaking Chinese firms getting themselves listed on U.S. stock exchanges to reap rewards from the good reputation developed by their more honest, hard-working counterparts? According to this surprisingly self-critical article by CCTV Analyst Lie Ge for China’s state-run Huanqiu, U.S.-listed China firms who break the law in the United States are ruining China’s good name, and should be punished not only by U.S. authorities, but by China’s.
For Huanqiu, CCTV Analyst Lie Ge writes in part:
Looking for partners for selling books, marketing anti-virus software, setting up social networks, online gaming sites, or tire manufacturing plants – in recent months, like a river rushing toward the sea, there has been a great surge of Chinese companies that have sought to be listed on the U.S. stock market. Regardless of the industry, its scale or its profitability, people seem to think they can successfully land on Wall Street. It’s a march that brings to mind a movie of a few years ago, Big Shot’s Funeral. In the film, it seems that a famous American director wants to have the filming of his Chinese funeral listed on the NASDAQ. The theme is anything but an outrageous joke. Of course, the premise is that the funeral is funded by an IPO.
Some critics assert that this is a “conspiracy” involving investors who are making a profit by circulating negative rumors and then short-selling the stocks. However, anyone familiar with China’s business climate and methods of growth must accept the real possibility that these negative rumors are true.
“Many utterly hopeless Chinese domestically-listed firms see an opportunity, even if they have to use fraudulent methods, which is quickly exhausting the confidence Chinese companies have accumulated with American investors. Some of these Chinese enterprises were already ‘sick’ when they went public, and during the financial crisis, “notorious” investment banks and various stakeholders helped them practice the art of deception to reap enormous rewards.”
It now appears that many U.S.-listed Chinese companies are joining forces to destroy the good reputation of China’s emerging and most innovative enterprises, destroy this hard-won financial platform, destroy the ambitious entrepreneurs who might have anticipated the future, and destroy Chinese businesses, China’s economy and the overall image of the Chinese people. This is a loss much greater than those of these U.S.-listed companies and their investors. They may now be debtors, but it is the many Chinese enterprises and all Chinese people who will have to pay the price.
READ ON AT WORLDMEETS.US, your most trusted translator and aggregator of foreign news and views about our nation.
