Yesterday, I read an article on Barron that had an interview with a guy called Dan David who used to be an investor in US-listed China stocks.
When Dan first read research reports that were pretty negative about some of these companies, his initial impression was that they were wrong.
So he decided to set up his own investigation team in China to prove the doomsayers wrong.
What he found out however, was that fraud was pervasive and out in the open. Things like:
Dan ended up setting up a website Geo Investing to provide some of these research information to retail investors.
The interview with Dan David can be found here: Fighting Investor-Rights Abuses in China
And very coincidentally at about the same time, I received an email from SGX promoting one of their courses:
I am very sure about the many weaknesses but who among us will be brave enough to seize the opportunities?