United States investors are critical to the Chinese company makeup
In the "data door" incident occurred after Giant Interactive issued a strongly worded statement that did not breach, denied all the allegations, said it would take a positive attitude toward the respondent; Focus Media insiders also said that preparations for the respondent. In this regard, international legal experts said that risk analysis from the collective past of similar cases, although most of them have ended with a settlement, but has something to do with the complexity of the collective action and the United States to strictly legal system, whether it is choice or reconciliation litigation, the two will be an extremely long process, enterprises need to pay enormous time, money and manpower costs, but also the reputation of the enterprise will cause great impact.
Although concrete results forecast is not good, but can be sure that one is: CSGRR on the prosecution of China's listed companies, but also Chinese enterprises outside financing a lesson. Disclosure of a "fatal wound" in the back of the Chinese concept stocks overseas embarrassing Status: Since the main market is still in China, has been the only domestic enterprises are familiar with the existing rules of the game and the lack of the vision of globalization, and the enterprises themselves governance structure is imperfect, without understanding the business culture in overseas markets and regulatory system, especially for not familiar with local laws easily trigger legal risks underestimated. These almost became China concept stocks "common."
Boston, the implementation of an investment banking partner, once encountered in PetroChina collective action in Canada after publicly said that while he shares the Chinese are interested in the concept, but "Asian companies generally do not follow the United States or international accounting standards, a lack of financial transparency , the disclosure of information is not sufficient, the business culture is not as straightforward as the West, these shortcomings can not be made on the credit rating agencies majority of the overseas-listed Chinese companies rating, a huge impact on investor enthusiasm. "
"Criticism from the foreign investors in terms of these factors, Chinese companies in overseas capital markets is' collective absences'." Luwei international law firm partner Lv Lishan Beijing lawyer told reporters, in fact, listed enterprises, in particular in the United States, is an investment banking, audit and other professionals such as lawyers and the need to strictly guard involved in the operation of these professional bodies in order to control their own risk, the general will strictly abide by the laws and professional standards, not condone listed companies to hide important The disclosure of information, and the Sarbanes-Oxley Act in the United States, after the commencement of a more stringent regulatory system, many enterprises of the law out of fear of severe and high regulatory costs, have also abandoned the United States listed.
According to statistics, in recent years in New York and Hong Kong-listed mainland companies by the ratio of a class-action suit has been accounted for 11.5%, the proportion of the Nasdaq market is up 17.2%, more worrisome, many domestic When enterprises received pleadings, often think of themselves as "baffling" being dragged into legal disputes.
"Actually, the reason is that foreign enterprises do not understand the regulatory system, the transparency of their own governance structure is not high, with a number of foreign countries have focused their attention on the movements of listed companies, specialized in class action lawyers make a living (as 'stock market vulture'), enterprises with a slight, it could cause big loss. "Lv Lishan lawyers said.
"For a long time, the United States investors in the China concept stocks have complex emotions: On the one hand, that China imperfect structure, corporate governance, information disclosure opaque But on the other hand, they also believe that the great potential of the Chinese market, while China-related stocks frequently encountered collective action and the United States are the two major stock exchanges to set up offices in Beijing, two contradictory emotions is that the respective reflected. "Lv Lishan lawyers said, risks and benefits coexistence, domestic enterprises to access to overseas securities markets, we must first practice good internal organs, and to comply with its rules of the game must not muddle through fantasy.
Hidden dangers often means disaster, a precedent has been too much.
Source: 法制日报 Dec. 16, 2007
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