Sun, Apr 26, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Comment: US-China accounting standoff could have substantial implications if not resolved by year-end

Wednesday, August 22, 2012

amb
Phil Niles
Benedicte Gravrand, Opalesque Geneva: Phil Niles, director at Butterfield Fulcrum, a fund administrator, examined the potential impact of the US-China accounting standoff on hedge funds and investment managers in its most recent commentary, received by Opalesque.

To add to the list of problems in the financial world (European debt crisis, slowing global economy, pending US fiscal cliff and others), there is the US-China accounting issue. "Currently set on simmer, this nuisance, if left unchecked, could quickly rise to a boil," Niles comments.

Chinese stocks listed in the US (many through reverse mergers with existing publicly-traded firms) have gone down over the last year because of issues surrounding the accuracy of their financial statements, he recalls. The Securities and Exchange Commission (SEC) launched a probe into the allegations, but the Chinese Securities Regulatory Commission (CSRC) was either slow in responding or blocked some data as state secrets.

The SEC handed Deloitte China a subpoena concerning the financials of a firm called Longtop Financial (in September 2011). Longtop is a US-lised Chinese firm registered in the Cayman Islands, accused of fraud. Upon Deloittes refusal to div......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

  4. Update: Wall Street has strong feelings about Jon Corzine trying to make a comeback[more]

    From Businessinsider.com.au: Former New Jersey Governor Jon Corzine is thinking about starting his own hedge fund, according to the Wall Street Journal, and because of the way his last firm imploded, Wall Street has strong feelings about that. “Truth is the larger seeders would never give him money

  5. Opalesque Exclusive: Cybersecurity and hedge funds - A manager’s experience, Part Four[more]

    Benedicte Gravrand, Opalesque Geneva: Ruane, Cunniff and Goldfarb, Inc. used to have their own IT infrastructure. Todd Ruoff, Executive Vice President in charge of trading, operations and technology, was responsible for its maintenance. Then he started looking at outsourced providers a couple of

 

banner