Chinese firms face uncertain futures on U.S. stock markets. Yesterday's SEC suit against the Chinese units of the Big Four accounting firms could mark the beginning of the end for the U.S.-listed shares of Chinese companies, including for giants like Sina (SINA) and Baidu (BIDU). The accounting firms face a Catch-22: The U.S. requires them to share information from their audits in foreign countries, while China bars them from doing so.
Have not regulators knowingly allowed numerous Wall Street schemes
for many China small-stocks (including CGA) involving under-reporting.
Nevertheless, I certainly agree that a lot of big-cap stocks like SINA and BIDU
should be listed in China rather than the U.S. unless they have solid business
reasons to support a foreign-listing. For example, CGA might someday acquire
overseas assets with competitively-valued stock.