Legal issues involving half of the Chinese companies trading on American stock exchanges could leave investors holding securities paper would be worth more as confetti, a Tribune-Review investigation found. Other investors in Chinese stocks are not much better off after a year of stinging allegations that many of the securities are rife with fraud, abuse and fictional transactions.

The Trib studied more than 125 Chinese companies and found at least 105 on American stock markets — Nasdaq, the New York Stock Exchange, and over-the-counter — were subject to federal enforcement action or investigation, fraud lawsuits or delisting.

Read more…