List of Chinese frauds | China Accounting Blog | Paul Gillis

List of Chinese frauds

I came across this one-post blog called Chinese Stock Fraud. The most interest-ing information is a list of Chinese stock frauds in Singapore, Hong Kong, and the U.S. and Canada.

The author lists 121 companies; 54 in the US and Canada, 44 in Hong Kong, and 23 in Singapore. It is the best list I have seen of Hong Kong and Singapore frauds. A number of alleged but unproven frauds are not included, even though some of these remain suspended from trading (i.e. AMBO, FU). The author lists no alleged frauds on Chinese exchanges.

One of the great challenges for academic researchers has been coming up with a comprehensive list of Chinese frauds.Zigan Wang of Columbia wrote a paper explaining the difficulty involved in just identifying U.S. listed Chinese firms. Because these companies are usually incorporated outside of China, a list of Chinese companies listed overseas must be derived from secondary inform-ation, like location of head office or percentage of assets in China.  

I am encouraging a graduate student to take on a project to create a compre-hensive list of Chinese frauds. The first task is to define a fraud, and that may lead to several lists. Short seller attacks, auditor resignations, delistings, and class action lawsuits are all indicators of fraud but do not definitively establish that a company is a fraud. Such lists, however, may provide the basic data to determine what factors lead to fraud. 

So, this is a recruitment advertisement looking for graduate students looking for a research project. I will be happy to supervise the project. 

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