Gorrie explains his ideas on the definitive reasons for Chinese firms and their decisions to remove themselves from the New York Stock Exchange and the NASDAQ.
Austin, TX (PRWEB) August 16, 2012
James R. Gorrie, Managing Editor for Absolute Wealth, has published the latest version of his editorial column, The Gorrie Details. In it, Gorrie explains his ideas on the definitive reasons for Chinese firms and their decisions to remove themselves from the New York Stock Exchange and the NASDAQ.
The truth behind the delisting is something China has been trying to hide for years. “It’s what the exposure to US equity markets will tell the world about Chinese companies, and Chinese accounting: That the health of both is built upon fraud and corruption. This isn’t news to China watchers, but it is a direct threat to a China that is much weaker than it wants the world to know,” Gorrie wrote.
The similarities to certain American companies are undeniable, said Gorrie: “Now it’s true that there are plenty of US firms that have engaged in fraud, price manipulation, insider trading, and various other sneaky moves to hide facts and enrich themselves. And, one could even make the case that not all are caught; and even those that are, are rarely punished to the extent that they ought to be. But in the larger context, the Enrons and the Global Crossings by and large pay for their frauds not by being delisted, but by being destroyed.”
What does that mean for Chinese companies coming under the same scrutiny? Read the entire column to find out what Gorrie thinks.
Gorrie’s thought-provoking articles on macroeconomic issues bring an impactful and no-hold-barred writing style to the events that effect both the private and public sectors.
James R. Gorrie is Managing Editor of Absolute Wealth, based in Austin Texas. In addition to his daily articles, The Gorrie Details, at Absolute Wealth, James also writes Special Reports, interviews current thought leaders, and provides analyses on geopolitical events around the world that affect the market. James is also currently writing a book on the crises China faces, which will be published by John Wiley & Sons in the spring of 2013. His background includes attaining doctoral candidacy in international relations and comparative politics, with an area specialty in international political economy and a BA in economics.
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