Call for greater scrutiny of Chinese companies

[lovuian]

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Call for greater scrutiny of Chinese companies
By Stephanie Kirchgaessner in Washington
Published: August 10 2005 23:55 | Last updated: August 10 2005 23:55

An influential Washington committee that investigates national security issues in connection to China on behalf of the US Congress is expected to call on Thursday for greater scrutiny of Chinese companies listed in the US and other international capital markets.


Roger Robinson, vice-chairman of the US-China Economic Security and Review Commission, told the FT that US regulators including the Securities and Exchange Commission needed to adopt an “enhanced effort” to “encourage” Chinese corporate governance practices.

“Basically, we ensure that there is more rigorous explanation of what Chinese state-owned enterprises do for a living, both at home and abroad, and what countries, if any, they are operating in . That would be a start,” Mr Robinson said.

A hearing on Thursday that will feature testimony from a variety of China experts will also explore the strengths and weaknesses of the Chinese banking sector and whether Chinese banks are “subsidising” firms with ties to the “military and weapons proliferators”.

The comments by Mr Robinson raise the prospect that the SEC could become more involved in vetting Chinese companies seeking US listings under the leadership of Christopher Cox, who was confirmed as chairman of the financial regulatory agency this month.

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There just starting to wonder about this huh!!! We are such smucks!!!

[NYC]

1. Locking the barn door

after the horse has been stolen.