英语论文网

lan after so many Chinese companies caught in embarrassing situations. From the 2006 data, the country there were 23 companies listed on the OTCBB , where 21 shares at $ 4 or less, 21 in 15 in $ 1 or less, including 14 in the $ 0.5 or less, the minimum is only $ 0.011 , with daily trading volume of 0 9 . An industry source said frankly : "If only for the financing comes , on the OTCBB meaningless ."

Due to overseas markets and securities regulations are relatively unfamiliar with Chinese companies listed overseas process may be triggered by foreign countries for negligence liability under securities laws . Most of these responsibilities with the Chinese private enterprises produce or trade securities issuance process of information disclosure or improper transactions , whereas once confirmed , private enterprises will have to face the high investor claims , harsh economic sanctions , and may even be criminal liability. Private enterprises may occur in the following situations lead to legal liability : breach issue procedures, disclosure of false information , fraudulent or manipulative trading. In addition to these more common alleged litigation matters, securities issuers and private enterprise as a listed company , in other areas such as repurchase company stock , voting delegate also induce other potential legal liability.

In early 2010, 16 Chinese enterprises in the United States suffered a class action . However , this is not infrequent events , the data show that about 8% after the listing of Chinese companies have encountered similar proceedings . The main reason these companies are being sued , including the prospectus , financial or operational reports false or misleading information , concealment or timely disclosure of important business information. This led to the company fell , causing losses to investors . Investors believe that their original purchase price of these shares was artificially inflated .

The most typical example is once financial magazine "Fortune " named for the 2002 Global 500 China Life, in December 2003 as " China Life Insurance Company Limited ," the name also listed in Hong Kong and New York , a total of 7.44 billion shares outstanding shares , which raised $ 3.48 billion , a record year global initial public offering (IPO) recorded the highest amount of funding . However, due to the company's stock on □ ago undisclosed "negative audit results " message , the formation of overvalued , making the news came to light , causing investors fell due to heavy losses , resulting in a class action by the United States investors .

The investors of " willful failure to disclose known negative facts" collective proceedings to China Life . The reason is because China Life IPO in its issue during the Chinese National Audit Office has been known before the company in 2002 and earlier years carried out a routine audit , and the company issued a negative audit findings , but because of China Life Insurance deliberately blocked this message, when the formation of China Life -chip stocks overvalued , causing investors in the news came to light losses due to dropped .