Chinese companies pull out of US stock markets

http://finance.yahoo.com/news/chinese-companies-pull-us-stock-095649722.html

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.

Some Chinese companies say they are pulling out of U.S. markets because a low share price fails to reflect the strength of their business. Withdrawing also eliminates the cost of complying with American financial reporting rules.

Focus Media “has been seriously undervalued on U.S. stock markets” and being taken private will help to promote its “long-term strategic development,” said a company spokeswoman, Lu Jing.

The company, formed in 2003, operates electronic advertising displays in elevators, grocery stores and other locations.

“We haven’t considered whether to list the company on Chinese markets but that possibility has not been excluded,” Lu said.

U.S.-traded Chinese companies faced scrutiny after auditors for several quit and others were accused of accounting irregularities. Concerns about company finances have caused share prices to tumble, costing investors several billion dollars.

“Probably all these companies have some questionable accounting, so they may prefer to move out of the U.S., not to come under too much scrutiny,” said Marc Faber, managing director of Hong Kong fund management company Marc Faber Ltd.

———–

“Probably all these companies have some questionable accounting, so they may prefer to move out of the U.S., not to come under too much scrutiny,” <— the irony is dripping off this one..

is that an eye in the logo?..yes..yes i think it is..

401

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~ by seeker401 on August 18, 2012.

3 Responses to “Chinese companies pull out of US stock markets”

  1. Good old China. She builds the world up then pulls the mat out from under it. Makes me wonder if the whole China economic expansion marvel was just part of a plan?

  2. Ann Barnhardt: ‘If You’re Still in These Markets You’re Either Stupid or On Drugs! ‘

    The owner of the former BCM brokerage states that JP Morgan knows the end is in sight, and they know that in a lawless environment, possession is EVERYTHING!

    Doc: Before we talk about the Sentinel bankruptcy case Ann, we’ve already seen lightning strike twice in the form of the segregated client theft of $200 million of PFG. What are your thoughts on the latest vaporization of client funds at PFG?

    Ann: It’s just par for the course, and really the big news within the last few days relative to the PFG case is the 7th Circuit Court of Appeals decision- relative to (and I know we’re getting into lots of different companies and lots of different outfits here) the Sentinel Management Group, which was a non-clearing FCM, that was a Ponzi, that crashed all the way back in 2007. So this happened 5 years ago, and they’re just getting the stuff adjudicated- like I said, the decision from the 7th Circuit Court of Appeals just was published on Friday.

    What that decision said, unbelievably, is that basically all property rights in the United States are gone. Up in smoke. The court ruled that if you have money with an FCM and they fraudulently used YOUR MONEY that they’re holding as a custodian- if they use your funds to go and borrow money to finance their own in-house proprietary trading desk, when that Ponzi collapses, the customers have absolutely no rights to their own property, and that the counter-party- meaning the mega-bank that lended the FCM the money fraudulently, they stay at the front of the line!

    Absolutely STUNNING! So what this does is it trickles all the way back down through the system to both MF Global and PFG, and basically tells the customers ‘Sorry, you’re screwed.’ Not only are you screwed, but we now have a legal precedent that is going to be used by every executive in every one of these companies to say ‘Hey! The 7th Circuit Court of Appeals just ruled that using customer segregated funds as collateral on your own loans to fund your prop trading desk is completely legal and doesn’t constitute fraud.’

    So what we’re seeing is the complete disintegration of the financial system before our very eyes!
    It’s Soviet! It’s truly, truly Soviet!! You couldn’t even make stuff like this up! If you told me a year ago that any of this would be going on, and that we’d have court decisions like this, I would have told you that you were completely out of your mind.
    Now here we are, it’s happening, you’ve got to get out of the financial system! Nothing is safe!

    http://www.silverdoctors.com/ann-barnhardt-if-youre-still-in-these-markets-youre-either-stupid-or-on-drugs/#more-11562

    • ” The court ruled that if you have money with an FCM and they fraudulently used YOUR MONEY that they’re holding as a custodian- if they use your funds to go and borrow money to finance their own in-house proprietary trading desk, when that Ponzi collapses, the customers have absolutely no rights to their own property, and that the counter-party- meaning the mega-bank that lended the FCM the money fraudulently, they stay at the front of the line!”

      not cool..

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