There have been quite a few Chinese frauds exposed in the past 6 months - many of these were listed on U.S. markets via reverse mergers. Essentially this is an old shell of a listing that an existing company can move into - sort of like when crab sheds its old shell and moves into better digs. Many of these companies have been exposed by a handful of firms who specialize in shorting (i.e. the Muddy Waters types).
Bloomberg has a list of all Chinese reverse mergers so one can assume someone at these handful of firms is looking into each and every one. I am sure some babies will get thrown out with the bathwater but I would not go near these with your 10 foot pole, since waking up one morning to a -80% return is not my cup of tea. In full disclosure I've spoken (and been bullish) on a few of these over the past 3-4 years. The extent of fraud from the Chinese has been a bit stunning to me - I guess being like Enron is cool.
The following companies are based in China and gained listings on U.S. exchanges after conducting reverse mergers, in which a publicly traded shell corporation is purchased, according to data compiled by NYSE Euronext. (NYX) Stocks that have been delisted from the Nasdaq Stock Market, NYSE Amex or New York Stock Exchange have been omitted.
The Securities and Exchange Commission cautioned investors on June 9 about buying stakes in Chinese-based companies when they gain listings through reverse mergers, avoiding the regulatory and investor scrutiny of initial public offerings.
NAME TICKER EXCHANGE AgFeed Industries FEED US Nasdaq American Lorain ALN US NYSE Amex Aoxing Pharmaceutical AXN US NYSE Amex A-Power Energy Generation Systems APWR US Nasdaq AutoChina International AUTC US Nasdaq Biostar Pharmaceuticals BSPM US Nasdaq China Armco Metals CNAM US NYSE Amex China Auto Logistics CALI US Nasdaq China Automotive Systems CAAS US Nasdaq China BAK Battery CBAK US Nasdaq China Biologic Products CBPO US Nasdaq China Botanic Pharmaceutical CBP US NYSE Amex China Cablecom Holdings CABL US Nasdaq China Ceramics CCCL US Nasdaq China CGame CCGM US Nasdaq China Finance Online JRJC US Nasdaq China Fire & Security Group CFSG US Nasdaq China GengSheng Minerals CHGS US NYSE Amex China Gerui Advanced Materials Group CHOP US Nasdaq China HGS Real Estate HGSH US Nasdaq China Housing & Land Development CHLN US Nasdaq China Information Technology CNIT US Nasdaq China Infrastructure Investment CIIC US Nasdaq China Jo-Jo Drugstores CJJD US Nasdaq China Marine Food Group CMFO US NYSE Amex China Natural Gas CHNG US Nasdaq China North East Petroleum Holdings NEP US NYSE Amex China Nutrifruit Group CNGL US NYSE Amex China Pharma Holdings CPHI US NYSE Amex China Recycling Energy CREG US Nasdaq China Ritar Power CRTP US Nasdaq China Shen Zhou Mining & Resources SHZ US NYSE Amex China Shengda Packaging Group CPGI US Nasdaq China Shenghuo Pharmaceutical Holdings KUN US NYSE Amex China Sky One Medical CSKI US Nasdaq China TransInfo Technology CTFO US Nasdaq China Valves Technology CVVT US Nasdaq China XD Plastics CXDC US Nasdaq China Yida Holdings CNYD US Nasdaq China-Biotics CHBT US Nasdaq ChinaCast Education CAST US Nasdaq ChinaNet Online Holdings CNET US Nasdaq Cleantech Solutions International CLNT US Nasdaq Cogo Group COGO US Nasdaq Deer Consumer Products DEER US Nasdaq Dehaier Medical Systems DHRM US Nasdaq Ever-Glory International Group EVK US NYSE Amex Feihe International ADY US NYSE Fuwei Films Holdings FFHL US Nasdaq General Steel Holdings GSI US NYSE Guanwei Recycling GPRC US Nasdaq Gulf Resources GFRE US Nasdaq Harbin Electric HRBN US Nasdaq Highpower International HPJ US Nasdaq Hollysys Automation Technologies HOLI US Nasdaq Jiangbo Pharmaceuticals JGBO US Nasdaq Jingwei International JNGW US Nasdaq Jinpan International JST US Nasdaq Kandi Technologies KNDI US Nasdaq Keyuan Petrochemicals KEYP US Nasdaq Kingold Jewelry KGJI US Nasdaq Longwei Petroleum Investment Holding LPH US NYSE Amex New Energy Systems Group NEWN US NYSE Amex NF Energy Saving NFEC US Nasdaq NIVS IntelliMedia Technology Group NIV US NYSE Amex Orient Paper ONP US NYSE Amex Origin Agritech SEED US Nasdaq Orsus Xelent Technologies ORS US NYSE Amex Puda Coal PUDA US NYSE Amex QKL Stores QKLS US Nasdaq Shengkai Innovations VALV US Nasdaq Shiner International BEST US Nasdaq Sinohub SIHI US NYSE Amex Sinovac Biotech SVA US Nasdaq SkyPeople Fruit Juice SPU US Nasdaq Skystar Bio-Pharmaceutical SKBI US Nasdaq SmartHeat HEAT US Nasdaq SORL Auto Parts SORL US Nasdaq Sutor Technology Group SUTR US Nasdaq Telestone Technologies TSTC US Nasdaq THT Heat Transfer Technology THTI US Nasdaq Tianli Agritech OINK US Nasdaq Tianyin Pharmaceutical TPI US NYSE Amex Tiens Biotech Group TBV US NYSE Amex Winner Medical Group WWIN US Nasdaq Wonder Auto Technology WATG US Nasdaq Wuhan General Group China WUHN US Nasdaq Yongye International YONG US Nasdaq Yucheng Technologies YTEC US Nasdaq Yuhe International YUII US Nasdaq Zhongpin HOGS US Nasdaq Zoom Technologies ZOOM US Nasdaq