Chinese Cos. Sneaking Into Public Status: SEC Official

Law360, New York (April 4, 2011, 8:07 PM EDT) -- A top federal securities regulator said Monday that Chinese private companies and others are increasingly using so-called backdoor registration to obtain the legitimacy of public companies and access capital markets without proper vetting.

"While the vast majority of these Chinese companies may be legitimate businesses, a growing number of them are proving to have significant accounting deficiencies or being vessels of outright fraud," U.S. Securities and Exchange Commissioner Luis A. Aguilar said during a speech before the Council of Institutional Investors.

In what Aguilar described as...
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