Hong Kong’s Top Securities Regulator Issues Warning About China’s Overheated Markets

Wednesday, June 08, 2011 07:41
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Hong Kong’s Top Securities Regulator Issues Warning About China’s Overheated Markets

Tags: China | emerging markets | fraud

The rush of investors to profit from China’s red-hot economic growth is turning the nation’s equities into the “new dot-com,” warns the outgoing head of Hong Kong’s Securities and Futures Commission.

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Martin Wheatley joined a chorus of voices warning in recent weeks that Chinese market gains look more and more like an unsustainable bubble.


Too many investors have rushed in to invest in Chinese companies without investigating the fundamentals, much like the Internet stock boom of the late 1990, Wheatley told the Wall Street Journal.


Amid a growing list of complaints over accounting practices and alleged fraud among Chinese businesses, the U.S. Securities and Exchange Commission has set up a special group to investigate some Chinese companies that trade in New York.

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