Ten Ways to Detect Chinese Stock Frauds

In the summer of 2011 Muddy Waters Research brought to light some suspect accounting practices from some U.S. listed Chinese companies, such as Puda Motor, Chinacast Education Corporation (PINK:CAST), Sino-Forest Corporation (TSE:TRE) (PINK:SNOFF) (FRA:SFJ) or China Electric Motor, Inc. (PINK:CELM). The general issues of accounting differences highlight China’s concerns to protect national and business secrecy (this appears to be...