During January 2011, there was an independent registered investment advisor who noticed that in the previous year 300 Chinese-owned companies had established initial public offerings in America. Numerous investors from the US bought comprehensive market exposure through exchange-traded funds and mutual funds to capitalize on China’s growth. With reports of the Chinese economy overheating and a possible bubble in the home market, some of those investors had asked the investment advisor whether they should be more selective and decide individual increase businesses.
During monitoring the list of the businesses from his favored research report, one in particular caught the investment advisor’s focus—China Electric Motor, Inc. (China Electric). But about China Electric, mixed effects were uncovered by the investment advisor in his research.
Publication Date: 12/21/2012
This is just an excerpt. This case is about Accounting
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