As expected Resourcehouse IPO has been pulled.
Chaoda, despite the apologists and the frantic share buybacks by it's management continues to sink. It wouldn't be presumptuous to say ALL public Chinese companies are fraudulent, and US companies would have a certain degree, however the level of fraud in Chinese companies is high. When investing in China, assume there is fraud and check the Margin of Safety:
- Is it a large enough company to garner enough attention from the government?
- Will management fraud, result in bullets to their heads?
- Will the company survive such fraud?
The list of Chinese companies that have been decimated by fraud with the management escaping scott free is long and getting longer... First Natural Holdings, Fuji, China Forestry, Yunan Green-Land, ..
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