December 3 and December 11, the Nasdaq Stock Market and New York Stock Exchange set up an office in Beijing.
The news industry have interpreted as: China concept stocks favored by the level of overseas markets, the two had come to an important global economic leader to lay down their capital value, approached initiative "that close" to the extreme.
In a very long time, the United States can be listed, to a large extent the success of the Chinese concept stocks ultimate sign.
Listed in the United States, the situation really good?
Clearly not. In recent years, the overseas listing of the "double-edged sword" not very bright side, more and more people of insight is causing concern: Because the United States was almost strictly "harsh" the regulatory system, China concept stocks in the "gold "At the same time the road also bear an enormous legal risk. One of the most obvious is that in recent years one to a class of cases:
Since 2001, China.com was the first collective action took place just six years, there has Netease, China Life Insurance, UTStarcom, China Aviation Oil, Sina, and so nearly 10 overseas listed companies were collective action "attacks", and also show the trend of rapid amplification, multiple events, to be foreign known as "China concept stocks ills" stage.
Has been "head halo" China concept stocks, why go out of the country after always "anticipated"?
Both from the bad "data door"
By the end of November, and the emergence of two explosive news again certification of a collective action "to expand the trend of" projection.
The domestic online games industry leaders Giant Interactive, and set up China's new era of outdoor advertising, scenery unlimited Focus Media, at the end of November in almost the same moment, were from the United States with a firm collective action.
Is collective action!
At this point, Giant Interactive listed on the Nasdaq just 27 days. November 1, Giant Interactive listed on the Nasdaq, then, the stock has been weak trend. November 19, Giant Interactive in the United States released the results after the stock market closed 2007 third-quarter earnings report. The report showed that, "Zhengtu Online" In the third quarter the average number of players online at the same time 481,000 people, the ring fell 6% maximum for the number of players online at the same time 888,000 people, the ring fell 17.2%.
It is this data series, a Giant Interactive handles. November 27, a named CoughlinStoiaGellerRudman & Robbins (CSGRR) announced that the United States law firms on behalf of investors to the District Court Southern District of New York filed against Giant Interactive, as well as specific executives and directors of collective action, the defendant does not compensate the disclosure of information sound and lead to the loss of investors.
CSGRR said investors should be listed as early as in the Giant Interactive players should know before the decline in the number of negative news, because it all happened Giant Interactive listed in the previous month, Giant Interactive in the October 31 listing applications and in the prospectus did not mention this, "the investors feel cheated." CSGRR allegations that Giant Interactive, as well as specific executives and directors violated the 1933 "American Securities Law," and the law in the corporate disclosure of key information, there are strict requirements, and Giant Interactive apparently did not meet this standard.
The news, a Giant Interactive shares plummeted, the stock market almost cruelly chopped waist.
The lawsuits next day, Focus Media also suspected of concealing negative information on the performance of a collective action. Focus Media is the cause in the November 7 of the second stock sale. CSGRR that Focus Media in the prospectus should be pointed out that their Internet advertising in the field of multiple acquisitions, and these acquisitions will lead to gross margins declined. May the fact is that Focus Media in the 12 days after the results must be released when the details of this announcement.
In fact, the plaintiffs are to seize the Giant Interactive Focus Media and Information Disclosure late 19 days to 12 days, "made a big issue."
Link:
Listed Companies in the United States Repeated Experience of Collective Action:Part 1
Listed Companies in the United States Repeated Experience of Collective Action:Part 2
Listed Companies in the United States Repeated Experience of Collective Action:Part 3