Reverse Merger Listings: Is the Backdoor Shut for Chinese Companies?
April 17, 2012
ABA Section of International Law
In recent years, a number of small private Chinese companies have listed on the NASDAQ and other stock exchanges through reverse mergers with public shell companies. This activity is now subject to significant regulatory scrutiny. The U.S. Securities and Exchange Commission has revoked the registrations of eight China-based companies since December 2010, and a number of Chinese companies have disclosed auditor resignations and other accounting issues during the past year. A panel will review the state of reverse merger activity.