Going Private: U.S. Listed Chinese Companies

Many U.S. listed Chinese companies have their eye on going private, with a growing number of such transactions having recently closed. This is the combined result of the current weakness of the U.S. capital markets, significant losses in the value of many U.S. listed Chinese companies, and pessimistic market forecasts that have resulted in trading at values below what controlling shareholders, management or private equity firms may think certain companies are worth.

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SEC Toughens Listing Requirements for Reverse Merger Companies

On November 9, 2011 the U.S. Securities and Exchange Commission ("SEC") approved additional listing requirements proposed by the New York Stock Exchange ("NYSE"), NYSE Amex ("Amex") and the NASDAQ Stock Market ("NASDAQ") for companies going public through reverse mergers. The additional requirements are a response to the highly publicized cases of reverse merger abuses in recent months, in many cases involving the alleged accounting fraud of U.S.-listed Chinese companies.

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