Tue, Mar 31, 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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner