Wed, May 25, 2016
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. Paul Tudor’s hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudor’s $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. West Virginia objects to Alpha Natural sale to hedge fund[more]

    From AP/Heraldcourier.com: West Virginia's environmental authority has filed an objection to the proposed $500 million sale of Alpha Natural Resources' assets to a hedge fund, arguing that the deal could leave the state holding hundreds of millions in reclamation liabilities. The Register-Hera

  3. Mitch Petrick leaves Carlyle as his hedge fund unit suffers losses while assets expand[more]

    Komfie Manalo, Opalesque Asia: Mitch Petrick will be leaving Carlyle Group as head of its hedge funds unit overseeing about $34bn as of March 31, after several funds under his management suffered losses while assets expanded, various media reported. Petrick joined Carlyle in 2010 and was a former

  4. Institutions - Kentucky pension leans into hedge funds amid governance turmoil, Korea's NPS names finalists for initial $1 billion hedge fund-of-funds allocation[more]

    Kentucky pension leans into hedge funds amid governance turmoil From AI-CIO.com: The Kentucky Retirement Systems moved to increase its hedge fund allocation as controversy reigned over fund leadership. Following a string of high-profile hedge fund exits, the Kentucky Retirement Systems (

  5. Fund Profile - The hedge fund that couldn't stay open long enough for a big payday[more]

    From Bloomberg.com: Toby Dodson waited six months for his bet against a fragile Portuguese bank to pay off. But before the reckoning, word came down from his hedge fund bosses at Achievement Asset Management in Chicago: get ready to clear out your desk and unwind your trades, we’re shutting down. Th