Short-sellers continue to allege that Chinese-based companies listed on the US stock exchanges are fraudulent. In response, the SEC and the trading exchanges have initiated investigations into these companies and many have been delisted. Stock values across the sector are down and confidence has been lost.

So what does this mean for investors? Are there still viable opportunities in China? What options are being considered by companies and investors? What are the current views of the SEC and US regulators? Are there effective methods of detecting fraud and addressing it? Can Chinese companies do anything to restore confidence? What does the future hold?

Read more…