American Investors Stung by Improper Investments in Shares of Chinese Corporations.

Stockbroker Law - Monday, November 14, 2011
American Investors Stung by Improper Investments in Shares of Chinese Corporations.

In the past 10 years, dozens of Chinese corporations have found a back-door way of selling their shares to the American public through reverse mergers with nearly-defunct or thinly-capitalized American corporations, having previously established share listings with the New York Stock Exchange and the NASDAQ stock market.

Many of these Chinese-based corporations maintain their managerial, financial and accounting procedures outside the reach of state and federal regulatory review.  The result?  Many of these corporations have reported fictitious revenues, income and profits, along with sketchy or nonexistent product lines and markets.  As a result, the shares of a number of these companies have declined over 75% from their U.S.-based trading highs.

We offer a free initial consultation to all investors who feel that they have been improperly overly-exposed to excessive concentrations of unsuitable Chinese stocks, resulting in losses.

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