Smart Bird: Wall Street brings China Fraud to US investors… for a profit of course

248 Chinese Companies with Off-Limit Audits and a Market Cap of Over $2.1 Trillion Are Listed on U.S. Exchanges – Now Congress Demands Action from the SEC 27 August 2021 the Martens

The legislation also requires the listed companies to provide documentation showing that they are not owned or controlled by a governmental entity. It also requires that the SEC prohibit the trading of the company’s stock in the U.S. if its audits cannot be inspected for three consecutive years.

The USCC also reports that among the 248 Chinese companies listed on exchanges in the U.S. are eight companies that are “national-level Chinese state-owned enterprises.” State-owned companies in China are controlled by the Chinese Communist Party (CCP). (That Americans are unwittingly raising capital to fund state-owned or state-controlled companies in China is nothing short of breathtaking.)

The U.S. listed Chinese companies, including the eight owned by the Chinese government, had their Initial Public Offerings (IPOs) underwritten by some of the biggest names on Wall Street, including JPMorgan Chase, Morgan Stanley, Goldman Sachs, and Citigroup, among others.

The fact that we have allowed companies to be listed on US exchanges without providing audits for over 19 years since we asked tells us what about our regulators.

These companies are not held in any TSP fund, but would be held in the TSP I fund if emerging markets are added. Emerging market companies without Western standard audits should not be listed in the US or in our retirement funds.

Categories: Perspectives

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