Understanding China, One Blog at a Time

An American in China

Ambow, Another Chinese Company Listed in the USA Defrauds Americans

Posted by w_thames_the_d on June 19, 2013

People who buy stocks in Chinese companies listed in the US deserve to lose all they invest for their stupidity. By trying to make a quick buck you are propping up the dictators who run this dump, ergo you deserve to feast on cat food for the rest of your life.

Do not trust Chinese companies you fools.


(Reuters) – Baring Asia Private Equity, with $5 billion in assets under management, has a reputation as one of the savviest investors in China.

But the Hong Kong-based firm is now sitting on an $43 million paper loss from a $57 million investment in New York Stock Exchange-listed Ambow Education Holdings Ltd., the latest example of how even the smartest money managers continue to get trapped in risky Chinese investments.

A Cayman Islands court ordered Ambow into provisional liquidation earlier this month.

“People have the assumption that because the company is public a lot of people have vetted it before, therefore you don’t need to do the fundamental due diligence that you would perform on a private company,” said Max Chen of Hong Kong-based private equity firm Primavera Capital.

“That’s a false assumption.”

Between 2010 and 2012, 70 Chinese companies trading on U.S. markets were targeted by class-action lawsuits. Altogether they lost $26.5 billion in market capitalisation, according to statistics compiled by Cornerstone Research.

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