you're reading...
China Daily Mail

China News

Longtop Financial, a popular Chinese software company, was exposed as a colossal fraud last year .The “cash balance” on Longtop’s balance sheet, it turned out, was fake;  a fiction created by the company’s managers and helpers.

The Longtop fraud followed other China stock frauds that have made many of Wall Street’s best and brightest look like fools. It has also increased the scepticism of American investors toward Chinese companies.

Unlike some of the more famous American-company frauds in recent years , like Enron and Worldcom, it turned out that Longtop had institutional help in perpetrating its fraud. The reason Longtop was able to fend off sceptics for so long, despite multiple analysts arguing that it was a fraud, was that Chinese banks were complicit in the scam.

According to an extraordinary letter that Longtop’s auditor, Deloitte, sent the company when it quit, Longtop’s banks sent out fake statements attesting to…

View original post 139 more words

About Craig Hill

General Manager at Craig Hill Training Services * Get an Australian diploma by studying in your own country * Get an Australian diploma using your overseas study and work experience * Diplomas can be used for work or study in Australia and other countries. * For more information go to www.craighill.net


No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


Join 1,664 other followers

An archive of all my old posts

Follow me on Twitter

I also have a news site about China:

%d bloggers like this: