China to Wall Street: The Side-Door Shuffle
But over the last few years, Rino International and scores of other young Chinese companies slipped into the United States stock market through the back door. Rino’s American stockholders later lost hundreds of millions of dollars when accusations surfaced that the company had fudged its books. All told, investors’ losses on these Chinese ventures have stretched into the billions.
The amazing thing about these stories, and they all seem to feature the inability for even large Wall Street players to do due diligence even to protect their own best interests. Except over the extreme short term.