Secrets to IPO Success for Chinese Companies

    2018 has been a banner year for Chinese IPOs thus far, with 23 Chinese companies going public on the U.S. stock markets in the first nine months. In the technology sector, Chinese innovators are outpacing American companies in the race to the opening bell. And there is a gathering herd of Chinese “unicorns” with multi-billion dollar valuations and strong backing from large private equity funds waiting for their turn to tap the public markets.

    In Audit & Assurance Services, IPOs

    Why Every Auditor Should Study Shenanigans

     

    An Interview with Howard Schilit

    Howard Schilit is America’s foremost scholar of the accounting tricks that public companies use to make their financial performance appear more enticing than the underlying reality.

    His seminal work, Financial Shenanigans: How to Detect Accounting Gimmicks and Fraud in Financial Statements, is required reading for financial analysts and aspiring fund managers. But like the prophet without honor in his own country, Schilit’s work has been strangely ignored in his own profession of accounting. MarcumBP’s Drew Bernstein sat down with Howard to learn about the latest in accounting skullduggery and why every auditor should be schooled in the fine art of financial fraud.

    In Forensic Accounting, short sellers

    Jim Chanos Isn’t Short on Ideas: How a Famed Investor Sniffs Out Financial Fraud

    More than eight years into the current stock market rally, professional equity bears have become an endangered species on Wall Street. And yet when I had the chance to sit down with famed short seller James Chanos last week, he was friendly, open, and highly optimistic about the opportunities to practice his tradecraft of sniffing out skunky accounting and malodorous business models.

    In short sellers

    New SEC Rule Allows All Companies to File Confidentially for IPOs

    Effective July 10, 2017, the Securities & Exchange Commission ("SEC") began allowing all companies to submit non-public, draft registration statements for initial public offerings ("IPOs"). Why make this significant change? In altering the disclosure requirements, the SEC hopes to reduce organizations’ exposure to market fluctuations while going through the IPO process, rationalize the filing process so that compliance is less burdensome and expensive for small organizations, and further streamline disclosures to make them more meaningful and useful to investors.

    The SEC’s new rule is largely an effort to reverse the decline in IPOs, encourage more public offerings, among both U.S. and foreign companies, on U.S. exchanges, and provide investors with access to a wider range of small, successful companies in which to invest. While this ruling may encourage more companies to consider (or reconsider) listing within the U.S. market, for foreign issuers, numerous complexities remain that should be considered.

    In SEC Audits, Audit & Assurance Services

    SEC Steps Up Cooperation with HK SFC — Hong Kong in the Sights of U.S. Short-Selling Funds

    Back in January of 2017, the Securities & Exchange Commission (SEC) announced a significant expansion of its cooperation framework with Hong Kong's Securities and Futures Commission (SFC), as the SEC seeks to effectively protect U.S. investors from fraud and trading abuses in increasingly globalized capital markets.

    The new framework expands on the agencies' 1995 Enforcement Cooperation MOU and 2002 IOSCO Multilateral MOU. It provides for significant information-sharing and enforcement cooperation including, but not limited to, investment advisers, broker-dealers, securities exchanges, market infrastructure providers, and credit rating agencies. With this expanded cooperation framework, the SEC is signaling that market players cannot evade the reach of U.S. law simply by operating from an offshore location.

    In China short-selling

    Looming Demographic Crisis Will Fuel Boom in China Healthcare M&A

    By Drew Bernstein

    In 2016 China emerged as the world’s most active player in cross-border M&A, with $225.4 billion of outbound deals, more than doubling the prior record of $102 billion in 2015 according to Dealogic. While the pace of dealmaking has slowed in 2017 as the government seeks to stanch the outflow of capital, China has arrived as a major player. The types of assets Chinese buyers are seeking has shifted from primarily energy and resource plays a few years ago to now focus on globally recognized brands and advanced technologies.

    Given the very powerful demographic dynamics in China, we should expect that healthcare is likely to become one of the most active sectors for both M&A and innovative partnerships in the years to co

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    In M&A Advisory, Chinese Healthcare Industry, China demographic trends
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