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Chinese companies pull out of US stock markets
AP/Yahoo Finance ^ | 14 August 2012 | Joe Mcdonald

Posted on 08/14/2012 1:16:32 PM PDT by Lorianne

Chinese firms leave US stock markets amid complaints about price, accounting scrutiny __ Just a few years after Chinese companies lined up to sell shares on Wall Street, a growing number are reversing course and pulling out of U.S. exchanges.

This week, Focus Media Holding Ltd., announced its chairman and private equity firms want to buy back its U.S.-traded shares and take the Shanghai-based advertising company private. The deal would value Focus Media at $3.5 billion, according to financial information firm Dealogic.

Smaller companies also are withdrawing from U.S. exchanges. In a sign of official encouragement, a Chinese business magazine said a state bank has provided $1 billion in loans to help companies with listings abroad move them to domestic exchanges.

The withdrawals follow accusations of improper accounting by some companies and a deadlock between Beijing and Washington over whether U.S. regulators can oversee their China-based auditors.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: chinesecompanies; stockmarket

1 posted on 08/14/2012 1:16:39 PM PDT by Lorianne
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To: Lorianne

The Chinese are worried about American acounting practices? I’d be a lot more worried about Chinese accountnig practices.


2 posted on 08/14/2012 1:21:56 PM PDT by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both)
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To: Lorianne

Wouldn’t be the first time someone has suspected a rigged house and left the casino. Maybe zero can entice them back with launch codes and a few rounds of drinks.


3 posted on 08/14/2012 1:22:35 PM PDT by SpaceBar
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To: BenLurkin

Bingo!


4 posted on 08/14/2012 1:23:00 PM PDT by b4its2late (A Liberal is a person who will give away everything he doesn't own.)
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To: Lorianne

5 posted on 08/14/2012 1:23:32 PM PDT by Salamander (Truth is hate to those who hate the truth.)
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To: BenLurkin

That seems to be it. US regulations require certain accounting standards to be met if you are going to be selling your stock on a public exchange here. The Chinese seem to fear that they can’t (or possibly that an Obama administration might scapegoat them in a borderline situation). And so they’re buying their own stock back.


6 posted on 08/14/2012 1:24:44 PM PDT by HiTech RedNeck (let me ABOs run loose, lew (or is that lou?))
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To: Lorianne

Couple of things:

SOX, Frank-Dodd and Chinese attempting to set themselves up as the premier business environment.


7 posted on 08/14/2012 1:30:10 PM PDT by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: Lorianne

Quite a few of these Chinese companies were actually scams.


8 posted on 08/14/2012 1:30:39 PM PDT by Vince Ferrer
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To: Lorianne

Couple of things:

SOX, Frank-Dodd and Chinese attempting to set themselves up as the premier business environment.


9 posted on 08/14/2012 1:31:03 PM PDT by Vendome (Don't take life so seriously, you won't live through it anyway)
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To: SpaceBar

I find the comments interesting here that jump to the conclusion that the chinese are just miffed because they can’t cook the books themselves, when daily we hear news of some other business scam in this country, billions skimmed here, billions “lost” there. The chinese are a lot of things, but stupid ain’t one of them. Maybe they did find corruption and book-cooking.


10 posted on 08/14/2012 1:34:01 PM PDT by SpaceBar
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To: All

Anyone consider that these companies came public on the US exchanges so they could get a much better price for their shares via the IPO. The US investors have a lot more investable money and US brokerage firms will place deals, no matter what the quility of the deal (remember FaceBooks recent IPO?).

Then with these new riches, let the share price decline and then use the money from the IPO to buy back shares and take it private.

Basically, they “used” the US stock market to make zillions that they couldn’t have made in their own markets and can now use these riches to take them private and keep the money they raised.

Diabolical perhaps, but it is clever.


11 posted on 08/14/2012 1:37:41 PM PDT by OhhTee5
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To: SpaceBar

I agree...stupid is not one of their traits. And it isn’t just the Chinese companies pulling their assets (and their risks) out of the US market since Obama came into office.


12 posted on 08/14/2012 1:39:20 PM PDT by ebersole
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To: Lorianne

I believe the champsion is the CEO who sold a large amount of stock in his company on the NYSE, then transferred all the assets of the company to himself and decamped for Singapore. It was legal under Chinese law.


13 posted on 08/14/2012 1:40:01 PM PDT by proxy_user
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To: Lorianne

And the Wall Street yawned and said “So what” today.


14 posted on 08/14/2012 2:00:00 PM PDT by MNJohnnie (Giving more money to DC to fix the Debt is like giving free drugs to addicts think it will cure them)
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To: BenLurkin

You said it...The ChiCom’s are NOT playing on the level.


15 posted on 08/14/2012 2:26:15 PM PDT by Michael Barnes (Obamaa+ Downgrade)
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To: Lorianne

They’ll pull out of treasuries and other bonds much faster, when the time comes.


16 posted on 08/14/2012 3:22:16 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: Lorianne

The Dow’s just a hair up a minute or so ago—very nearly no change from opening. I doubt the Chinese are going to hike our unnatural, global dollar. ;-)


17 posted on 08/14/2012 3:25:25 PM PDT by familyop ("Wanna cigarette? You're never too young to start." --Deacon, "Waterworld")
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To: BenLurkin

When I think China, I think Muddy Waters.


18 posted on 08/14/2012 3:41:49 PM PDT by 1010RD (First, Do No Harm)
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To: Vince Ferrer

“Quite a few of these Chinese companies were actually scams.:

I’m inclined to agree with you. Eighteen of the 30 Asian private equity firms that have gone under in the first two quarters of 2012 are yuan-based and supported by the Chinese government.

The ChiComms are going to pay a price for selling me bolts and screws that are not properly annealed. You have no idea how frustrated I get when the bloody head of a ChiComm bolt snaps off while I’m torqueing it.

My frustration, though, is a blessing for the US Navy. When the navy wants to track ChiComm warships, it only needs to follow the popped rivets floating on the water. That saves money on expensive radar.

Remember the big hoopla about the ChiComm aircraft carrier? My sources tell me that 25 of of the 30 Wong Wei squadron pilots who tried to land on the deck hit below the waterline. The other five hit various parts of the ship, including the flagpole in the center of the deck, and that set the carrier on fire.

I think my sources are correct because nobody has seen the carrier for six months. It’s probably being repaired in the Gobi desert so it doesn’t sink again. The odds are 50-50 that it gets blown away by a sandstorm and ends up under the control of the Mahayana Buddhist sect in Lhasa, Tibet.


19 posted on 08/14/2012 3:48:50 PM PDT by sergeantdave
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To: sergeantdave
I'd like to hear more about the carrier. Maybe it will end up being a floating casino after all.

In the last two years, Chinese companies bought up failing small cap listed companies here. It is a technique to avoid the costs of doing an IPO. Then they would rename the company to "China something", figuring every American wanted to get on the ground floor of a Chinese company. The stocks would gyrate around, and eventually crash, because the companies were basically worthless phantom companies, like a lot of the dot com companies. So they are mostly gone now, and traders are the wiser. People lost a lot of money on them.

Maybe there is legitimate concern by legitimate Chinese companies, but I think it is more just the end of this scam.

20 posted on 08/14/2012 4:08:28 PM PDT by Vince Ferrer
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To: Lorianne

Huge impact. Dow up 2 points or so today. S & P down about 0.1. Yawn.


21 posted on 08/14/2012 4:11:23 PM PDT by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
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To: MNJohnnie

Ayup.


22 posted on 08/14/2012 4:13:38 PM PDT by Cyber Liberty (Obama considers the Third World morally superior to the United States.)
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To: Vince Ferrer

“I’d like to hear more about the carrier.”

No problem. The carrier is painted zebra-color so it can’t be seen when it docks at Harrare, Zimbabwe. It lands there twice a year so people can go water skiing. It can go from 0 to 60 in 3.45 days.

The name of the vessel is “Moby’s Prick” and it has four whale girlfriends, including Hillary and Wookie. It’s propelled by a complex system of semaphores, whips and oars. The ship’s captain, Admiral Woo-Woo-Woo, is well respected in China’s navy for his innovative use of training wheels to make the carrier go straight.

The carrier has a long and proud history. During the first Sino-Japanese War, it disguised itself as a sunken ship after a Japanese battleship rammed it in New York harbor. Hakim Goldstein, a Jewish shoe salesman, refloated the carrier in 1906 and sold Air Jordan shoes on the deck until Michael was born and sued him for copyright infringement.


23 posted on 08/14/2012 7:44:00 PM PDT by sergeantdave
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To: sergeantdave

Perhaps I should have clarified, I’d like to hear more accurate details about the carrier.


24 posted on 08/14/2012 7:52:41 PM PDT by Vince Ferrer
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